Chapter 9
Step 6: Investment Management – Maximum Returns With Minimal Taxes, Fees
"Proper planning prevents poor performance – Matt Rettick"
Now that, hopefully, you have a better idea of the importance of your future fiscal fitness and the components that make it possible, let's see how to combine those parts into a money-management platform that works for you. No matter your age, the goal is to take the necessary steps now to ensure that you and your loved ones remain financially secure and fiscally fit today and down the road. As we've discussed, financial fitness includes everything from making sure you have the necessary documentation in place, to buying long-term-care insurance, seriously considering fixed indexed annuities or other options that provide guaranteed income for life, buying life insurance with your loved ones' financial future in mind, and more. Fiscal fitness also involves knowing how to manage your other assets – your investment portfolio – wisely.
Maximum Returns
In other words, you must learn how to invest your nest egg for maximum return with minimal risk - and pay the lowest taxes and fees allowed by law.
If you're already retired and living on a fixed income, you may prefer the safety and security of fixed indexed annuities that don't risk your principal in the stock market.
But what about your other assets? With inflation running at about 3 percent, stashing cash under the mattress is not a viable option. Interest on a money market account probably won't cover - let alone beat - inflation for the long haul either.
Or what if you're not retired and are actively looking to grow your nest egg? How can you generate double-digit returns on investments with fiscal fitness in mind?
In this age of low interest rates and returns, making your money work hard for you is a tall order, especially without taking big risks. But with the right approach, guidance, and direction, it is possible to combine financial gain and fiscal security. No matter our age, income, or personal and financial goals, we all would like to make maximum return on our money while paying minimal taxes and fees. But how is that possible without risking the hard-earned principal we've discussed throughout this book?
The answer is a sound money-management platform that includes carefully considered investments. We're not suddenly advocating that you toss financial caution and moderation to the wind, or that you forget the long-term-care insurance, fixed indexed annuity, life insurance, and other essentials so you can invest in frivolous stocks. We are by no means talking about bingeing on high-flying investments or the financial fad of the month. We are suggesting that you – with the help of your financial advisor – take a big-picture, long-term look at what you have.