Liquidity, Safety and Growth

Risk Management: What are the different Characteristics of Investments? Liquidity, Safety and Growth I’m Steve Shyman, at Wilsave, we are Specialists in Safer Money Strategies Different investments have different characteristics.  Let’s Understand the different characteristics of different investments and learn how to blend our portfolios to reach the desired results.

In any investment that you make, you can typically only have 2 of the three characteristics.

A well blended, properly balanced portfolio will have some of each.

The three characteristics are:

 Liquidity, Safety & Growth

Savings Accounts

Checking Accounts

Money Market Accounts

This is for money you need to get to quickly and easily.

Here, You give up the higher rate of return

Keep money here for paying bills, living expenses, and emergencies.

If you have too much here, you will be losing purchasing power or your money  to inflation.

CDs

Fixed Annuities

Fixed Indexed Annuities

These are for money that you don’t need immediate access to and are comfortable parking for a while to get a safe but higher rate of return

The main differences between CDs and annuities are

CDs are guaranteed but may not provide the rate of return or liquidity that you are looking for 

Annuities are also guaranteed. They have the potential to earn much more than the bank. They offer some liquidity and possibly other features and benefits that may be appropriate and advantageous for your financial situation.

Annuity features and benefits include:

           *guaranteed safety 

           *reasonable rates of return

  *tax deferral

            *penalty free withdrawals

  *guaranteed income for life

  *enhanced death benefits

  *long term care benefits

For money that you can’t afford to lose, you’re OK with limited liquidity on and want to outperform the bank, Fixed and Fixed Indexed Annuities can be an important part of your financial plan. 

Stocks

ETFs

Mutual Funds

This is money that you can afford to lose. 

To get the higher rate of return you are  willing to take more risk. 

Most people buy and hope that they don’t experience large losses when markets fall, but history painfully proves again and again that this doesn’t always work. 

Today, it is possible to be in the market and actively manage risk to help limit

the large losses that can devastate your portfolio and reek havoc in your life.

The market is more volatile than ever. 

 One look at this graph of the S&P                                               

      Illustrates the volatile world we live in.

Notice the smooth uptrend from 1980

     till 2000 

     and the wild swings since 2000.

This volatility, called by some experts as 

      “the new normal” is likely to continue and                  these swings       

       can be dangerous to your wealth. 

Protection from these large swings to limit large losses is important and you now can have it. 

With today’s methods and products,  your safe money can have some liquidity and your risk money can have some safety. 

The landscape has changed over the last 40 years. To keep up and do well, you must be able to adapt your investment style to what is going on today.

To see how you can help protect your money and limit your losses

Please contact us at 312-953-2097, send me an email at steve@wilsave.com, or fill out the meeting request form at www.wilsave.com

There is no charge for our no obligation consultation.

 

 

 

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