By Chris McIntire President, McIntire Retirement Services
I thought I could reflect upon what my clients have said has been their biggest concerns through 2017 and what we have been assisting them with looking into 2018 and beyond. First of all, it has been the record highs of the stock market as we have gone through 2017 and should they keep investing into it.
Not everyone takes all of their money and puts 100% of it directly into the stock market. A well diversified portfolio for a conservative minded investor should limit your direct exposure to stocks as an asset class by design. There could be some bond type holdings, real estate or even gold in certain portfolios. More aggressive minded investors would want more stock exposure and less in assets like bonds typically. All assets have some degree of risk so be certain you are aware of the fluctuation in value that can occur in whatever you choose to invest in.
We have also seen unprecedented amounts of money moving away from saving type accounts and investing it into mainly conservative portfolios as cash has been building up and the rates at the typical bank have not improved much despite a few rate increases this year. I would expect this to continue into 2018 as interest rates will improve gradually and that might not be good enough for folks with cash sitting on the sidelines.
We have been assisting our folks explore their Long Term Care (LTC) options as they go through retirement. There are more options than ever before as insurance companies have been moving away from the stand alone LTC policies which were mostly a “use it or lose it” type of policy. Rate increases here have also soured policy holders as an option to leverage the risk of spending their savings down because of a prolonged stay in an assisted living or nursing home type of facility. I will say this is where the free market has worked very well as many more companies are in this market which helps with pricing and options for the consumer.
Next has been income planning, pension buyouts and rollovers. The biggest concern for most retirees is running out of “income” and being a burden on their children. Thankfully, there are many options to build an income generating portfolio between preferred stocks, certain annuities, life insurance as an income vehicle and other assets, we can provide a wide array of choices for our clients and folks like you.
I would expect these trends to continue into 2018 and with some uncertainty on the geopolitical stage, ala North Korea and Iran; I would think most investors have some doubts looking into the crystal ball as well. Happy Holidays all! Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor. BCM and McIntire Retirement Services are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents.