6 Big Mistakes Million Dollar Clients make when needing Income at Retirement.

1) BOND FUNDS
If you need income in retirement bond funds may be the answer. The past few years of rising bond prices have generated above average returns for the fund, but the real current yields of the underlying bonds may be much less than what you think.

2) USING SHORT-TERM BONDS EXPECTING RATES TO GO UP
Using short-term bonds expecting rates to go up-Listening to market news and pundits would lead you to believe that short-term bonds are the only solution in a rising rate environment. This can be a dangerous game if you need real yield. The reason being, if you’re wrong you may need to generate higher returns in other parts of your portfolio to offset what little return you are getting on short-term bonds.

3) BOND ETFs
Bond ETFs can be convenient to purchase because ETFs trade throughout the day but, are you aware of the risk that comes along with this? Bond ETFs can actually trade at prices below their Net Asset Value which means you’re already starting from behind.

4) YIELD ON PREFERRED STOCKS
The yield trap of preferred stocks, why you may not get the return you expect. While preferred stocks offer higher yields, it’s important to understand the risks of volatility and yield to worst calls before you invest in preferred stocks.

5) ANNUITIES
Are you helping your retirement or are you funding your advisors retirement? Always understand the cost of an annuity, it may not give you the results you want or that you need.

6) FEES
Fees can diminish your income in retirement, and also be a drag on your portfolio returns robbing you of your hard earned investment. Fees can impact results, in some cases significantly, especially when investing in low interest rate bonds.

Are you on track with your investment strategy and satisfied with your current performance?
Our firm regularly helps high net worth individuals with multi-million dollar portfolios meet their investment goals. As one of the top independent private wealth management firms in the nation, we understand the unique investment requirements of the affluent and would like to help you as well.

Call 704-554-8150 or email us to set up a personalized portfolio analysis today.​