Handing Out Financial Superlatives

Handing Out Financial Superlatives

The Prelude:

Remember your senior yearbook that included superlatives like ‘Most Popular’ and ‘Class Clown’? Well, we’re taking that idea and applying it to the financial world by picking out the investment options that are ‘Most Overrated’, ‘Most Underrated’, ‘Most Popular’, and ‘Most Likely to Disappoint.’ 

The Bass Lines:

[1:03] – Class Superlatives at the School of Financial Strategies

  • [1:33] Most Underrated: Roth IRA – People at retirement age often wish they’d contributed more to their Roth IRA. Younger people are not utilizing the Roth as much as they should. Most people opt for immediate gratification of a 401(k) or traditional IRA for an immediate tax break now.
  • [3:05] Most Overrated: Expensive Cars – People know it’s an expense rather than an investment, but they often buy more car than they need with the excuse that it’s “reliable.”
  • [5:24] Most Likely to Disappoint: Whole Life Insurance Policies – They’re often purchased with the idea that they’ll build a cash value guarantee. But 10, 15, 20 years in, they don’t have the cash value to justify it.
  • [7:05] Most Popular: 401(k), 403(b), TSP (Thrift Savings Plan) – It’s an easy way to save for retirement. The problem arises when people focus solely on the 401(k) without also giving attention to their Roth IRA.

[9:20] – Possible Winner Overthrow?

  • Could the Roth take over as Most Popular? – Most people tell their HR rep how to delegate to the 401(k). You’ve got to be disciplined to also put the money in the Roth if you’re bringing it home.

Another Octave:

  • [10:10] – Teachers Pet: The Variable Annuity – Popular with financial advisors, but be sure you know what you’re getting into before you become friends with the Variable Annuity.

The Encore:

The host: John Stillman – Contact – Book – Call: 919-391-3446