DOLLAR$ AND SENSE

Owning vs. Renting Your Gains

BY CHRIS HANLY
Investment Consultant, Gary Goldberg Financial Services

With markets trading at all-time highs and the Fed tapering its asset purchases (the beginning of the end for QE), investors are rightfully asking themselves if this might be the time to take some chips off the table. After all, who wants to experience 2008 again? Then again, my firm – Gary Goldberg Financial Services – expects further gains this year, and few are enchanted by a strategy that would eliminate the potential of realizing further gains. There is an alternative to “selling out” for investors who are looking to protect their gains, especially for your IRA and other retirement monies.

For most investors IRA and 401(k) rollover accounts are long-term investments that will likely have to last for the rest of their lives. If this is the case with you, consider converting your IRA mutual fund or stock holdings to an IRA based managed variable annuity. The move could prove very beneficial. One of the biggest misconceptions about variable annuities is that their biggest benefit is the tax-advantage treatment they receive. In my opinion, the ability to lock-in gains, offer a guaranteed death benefit to the account holder’s heirs, and provide a guaranteed lifetime income far outweighs the tax-deferred growth they offer.

Of course, there are disadvantages, costs, and risks associated with variable annuities, which must be taken into consideration before making any investment decisions. That is why it is important to make sure to read the prospectus before investing. The Gary Goldberg Financial Services trademarked Montebello Process helps investors develop a roadmap and investment allocation strategy to help overcome some of these short-comings.

By addressing the three different time horizons every investors faces – short-term, intermediate-term and long-term – The Montebello Process helps determine the suitable portion of an investor’s assets that can be allocated to a managed variable annuity, whose investment benefit are typically maximized over time through a five to ten year holding period. Utilizing a managed variable annuity to help ensure and insure a portion of your retirement savings can make a lot of sense. I invite you to call me at 800-433-0323 if you want to learn more.

Christopher Hanly is an investment consultant with Gary Goldberg Financial Services in Suffern and can be reached at (845) 368-2900 ext. 247 or chris.hanly@garygoldberg.com.