Financial Advisors and investors managing their own portfolios often wince when they hit the “sell” button to liquidate stocks or bonds in order to meet an income or lump sum need in retirement. As I write this at 2:52pm on Friday June 24th the Dow is down over 585 points. Over 3.25% down today so far! Over the last year there has been disconcerting volatility and a range on the Dow of 15,370 to 18,168. The NASDAQ has been even more frightening. Down 4% today losing nearly 200 points so far. In the last year we have seen a NASDAQ low of 4210 and a high of 5231. A disparity of over 1000 points!
Unfortunately the needs of retirees or those planning for retirement are not magically tied to the best days to liquidate assets. What if you needed to sell today? Or maybe we can wait until tomorrow and not sell so cheap? Who can predict what event might cause a need for money fast? Much less what the market will look like at that moment? I just took a call from a client whose A/C failed yesterday and needs replacing. At 83 years of age a sweltering house is a serious health risk. The new unit is close to $10,000. Wouldn’t you hate to liquidate stocks to raise that today? Instead she is using some of her home equity that is available through the line of credit we set up. You and your advisor need an alternative source of funds to mitigate this very real risk! Or perhaps, like over 70% of retirees, the only asset to speak of is home equity. To leave that unavailable is unthinkable. Let me show you how use a remarkable, government insured program that has just had a major overhaul. More discussion of how this works is here.