Karl Frank, Certified Financial Planner ®, MSF, MBA, MA, is the President of A&I Financial Services LLC, a local business that specializes in wealth management, insurance planning, and retirement planning. Karl cares for business owners and the businesses that care for them. Learn More about Karl.

Murphy's Law and the Markets

You  might feel like it's "Murphy's Law," or that whatever can go wrong, will go wrong. For example, if you invest in stocks then the market is likely to decline shortly thereafter. And you may look at that long-term graph of investment returns and say something like, "But that's the past. What about my future?

When looking into the future we don't know what the market will do, so we invest in a way that gives us the best chance of success. Like picking a chocolate from a box, we may pull out a winner or pull out something distasteful. Historical performance shows that most of the years are winners. In fact, the size of the winners is significantly larger than the size of the losses; so keep on investing, year after year. 

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What Road Are We On?

What road are we on?

 
Recently, a terrible tornado wiped out large sections of a small town in Arkansas. A resident returned to her neighborhood where it looked like a bomb had exploded. She asked, in her search for her pile of splinters and rubble, formerly known as a home, "what road are we on?"
 
This is the right question to ask: what road are we on?
 
What is the plan for our financial journey? Let's not ask about what the economy is or is not doing, or what the stock market did or did not do yesterday, or what we prognosticate it will do tomorrow. Instead, what is our plan for income for the rest of our lives?
 
In the long-term, our income must outlive us. In the long-term, we must invest our assets so that our income will keep pace with inflation. These are the fundamentals that form the foundation for everything else we are doing. We either invest in fixed income assets, or rising income assets. 
 
A fixed income investment gives us greater certainty in the short run that our principal will be safe. If the fixed income is higher than your increasing expenses today, you can afford that safety. However, at a future date, when your advisor at A&I will still be here with you, as shown in the chart below, your fixed income may come up short.
Talk to your advisor about ways to protect your future income, not just today's income, and begin (and end) your conversations with a plan for the long-haul. Together, we can make sure you're on the right road.
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Go Tax Free

A&I Financial Services - Karl Frank Book - Go Tax Free

 

 

 

 

 

An assortment of tools and strategies that give readers of all backgrounds a clear, specific action plan for obtaining the maximum allowable control over when and how they pay taxes.
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Go Paperless 

Addressing Global Concerns on an individualized basis