Nothing could be worse than QE3

By Cal Burgess

Retirement Servicing Group PLLC


As markets both domestically and internationally face volatility, many investors are looking to the federal government to yet bail them out again. If and when Quantitative Easement Part 3 does happen, the market stands to take a much more volatile turn when the debt ceiling is addressed again in 2013.

Evidently the Federal Reserve’s promise not to raise interest rates or income taxes until 2013 is not enough. Disgruntled investors fear their retirement savings will continue to dwindle in this market fueled by both slow growth and lingering Euro concerns.

In acts of desperation, instant gratification seems to outweigh the long term effects of another federal bailout. Unfortunately, this will only prove to diminish their retirement savings unless other financial strategies are explored.

Bullish investors would not be so desperate on another federal stimulus if they had placed financial guarantees within their portfolio. By implementing financial guarantees, you can eliminate all the downside of the market through a concept called annual reset. With certain products, such as the tax advantaged strategy, not only will you avoid market volatility but you may also take advantage of an income stream exempt from federal income tax.

Market volatility is expected to be present for several years to come, and failing to protect your money now may very likely prove disastrous. In summary, how many times can Uncle Sam cut a check to satisfy and bail out Wall Street? More importantly, how much volatility are you willing to take on before enough is enough?

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