Page 2 - Stock Market.pdf
P. 2

The wealth management and financial                          creation.
    planning process in America is broken.

    That's not an uplifting opener, I know. But                 Fresh Alternatives to the Stock
    you have to name an issue plainly before                    Market
                                                                My father-in-law lives in India, but he takes
    you can make it better. The good news is
                                                                a keen interest in my U.S. investment
    that there are alternatives available - if you
                                                                portfolio. He was shocked when I
    use the right strategies.
                                                                explained to him that my wife and I have

    First, let's take a look at the problems.                   few options other than investing in the
    Most consumer investors have limited                        stock market. In India, the government
    options for wealth creation. Most involve                   created several new products with 4 to 10
    stock market investing, usually through an                  percent yields in response to high interest

    employer-backed 401(k), mutual funds or                     rates. That strategy enables people to
    an ETF/index fund portfolio, bonds, or a                    diversify their investments and protect
    stock portfolio.                                            themselves against downturns in the

                                                                market. Here in the U.S., we live in fear of
    Unfortunately, these and other popular                      the next bear market.

    products are tied to the market's
    performance. Investments go up when the                     Consumer investors nervously wait out
    stock market goes up and vice versa, and                    tragedies, such as the Great Recession,
    you need a strong stomach to survive the                    watching as their portfolios decline by up

    swings. Even if you play it relatively safe                 to 40 percent while they pray for a
    and keep your cash savings in CDs or                        resurgence. The average retail investor
    money market accounts, you're earning                       saw a 2.1 percent return          between 1992

    less than 1 percent interest, which is less                 and 2011 - not exactly an inspiring
    than inflation. That's no strategy for wealth                number. Investors then become wary
                                                                about their stock market investments,
                                                                selling when markets are tumbling and

                                                                choosing to keep their money in standard
                                                                savings and checking accounts. All too
                                                                often, they then end up destabilizing their

                                                                financial futures.

                                                                Fortunately, there are alternatives. If you

                                                                want to begin creating wealth or simply
                                                                become less dependent on stock-based
                                                                 investments, consider the following





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