In 2017, we were again reminded of the importance of following an investment approach based on discipline and diversification vs. prediction and timing. As we gear up for the new year, we can look at several examples during 2017 that provide perspective on what guidance investors may
want to follow, or not follow, in order to achieve the long-term return the capital markets offer.
Each January, a well-known financial publication invites a group of experienced investment professionals to New York for a lengthy roundtable discussion of the investment outlook for the year ahead. The nine panelists have spent their careers studying companies and poring over economic statistics to find the most rewarding investment opportunities around the globe.
Ahead of 2017, the authors of the publication’s report were struck by the “remarkably cohesive consensus” among the members of the group, who often find much to disagree about. Not one pro expressed strong enthusiasm for US stocks in the year ahead, two expected returns to be negative for the year, and the most optimistic forecast was for a total return of 7%. They also found little to like in global markets, citing “gigantic geopolitical issues,” including a Chinese “debt bubble” and a “crisis” in the Italian banking system.
The excerpts below summarizing the panel’s outlook presented a less than optimistic view of the year ahead in January 2017.
“This could be the year when the movie runs backwards: Inflation awakens. Bond yields reboot. Stocks stumble. Active management rules. And we haven’t even touched on the coming regime change in Washington.”1
The outcome of these predictions: Zero-for-four, although some might point out that at least they got the direction right regarding the inflation rate.
Inflation barely budged, moving to 2.17% for the January–November 2017 period, up from 2.07% for the year in 2016.2
The yield on the 10-year US Treasury note did not move up but instead slipped from 2.45% to 2.40%.
Stocks moved broadly higher around the world, in some cases dramatically. Twenty out of 47 countries tracked by MSCI achieved total returns in excess of 30%.3
According to Morningstar, the average large blend mutual fund underperformed the S&P 500 Index by 1.39 percentage points, and the average small company fund underperformed the S&P 600 Index by 1.35 percentage points.
The above-mentioned panel was no aberration. Among 15 prominent investment strategists polled by USA TODAY, the average prediction for US stocks for 2017 was 4.4%, while the most optimistic was 10.4%.4 Expert or not, there is little evidence that accurate predictions about future events, as well as how the market will react to those events, can be achieved on a consistent basis.
What do you get when you combine a tumultuous year for a new US president and divisive political trends in many global markets? Answer: a new record. For the first time since 1897, the total return for the US stock market (the CRSP 1-10 Index and, prior to 1926, the Dow Jones Industrial Average) was positive in every single month of the year. During the year, a great deal of media coverage was focused on markets at all-time highs, and some investors braced themselves for a sharp drop in stock prices. Not only did the much anticipated “correction” never occur, financial markets remained remarkably calm. Out of 254 trading days in 2017, the total return of the S&P 500 Index rose or fell over 1% only eight times. By comparison, in a more rambunctious year such as 1999, it did so 92 times.5
North Korea issued threats of a nuclear missile strike throughout the year and boasted that even mainland US cities were vulnerable to its newest warheads. Next-door neighbor South Korea would seem to have the most to lose if such a catastrophe occurred, but Korean stocks were among the top performers in 2017, with a total return of 29.5% in local currency and 46.0% in US dollar terms.6
To many experienced researchers, Chinese stocks appeared alarmingly vulnerable. A gloomy November 2016 article7 warned that “China’s debt addiction could lead to a financial crisis.” In the article, a prominent Wall Street strategist observed: “It’s scary that China seems to be continuing its debt binge to achieve its unrealistic growth targets.” And a global fund manager noted: “We are the most underweight China we have been since launching the fund five years ago.” The outcome: China was the third best-performing stock market in 2017 with a total return of 51.6% in local currency and 50.7% in US dollar terms.8
The seven-year string of increasing US auto sales finally ended in 2017. Domestic sales fell 1.0% at Ford Motor, 1.3% at General Motors, and 10.7% at Fiat Chrysler.9 Anticipating the sales slump, a Wall Street Journal columnist warned investors in January 2017 to avoid the stocks.10 Good advice? Ford Motor had a total return of 8.7%, which was in fact below the 21.8% return of the S&P 500 Index. However, General Motors returned 22.5%, and Fiat Chrysler’s total return came in at an impressive 96.3%, even with more than a 10% drop in sales.11
While some of these examples may seem counterintuitive, the above “surprises” from 2017 reinforce the challenge of drawing a direct link between positive or negative events in the world and positive or negative returns in the stock market.
THE MILLION DOLLAR BET
Last year saw the conclusion of a 10-year wager between Warren Buffett, chairman of Berkshire Hathaway Inc., and Ted Seides, a New York hedge fund consultant. Seides responded to a public challenge issued by Buffett in 2007 regarding the merits of hedge funds relative to low-cost passive vehicles. The two men agreed to bet $1 million on the outcome of their respective investment strategies over the 10-year period from January 1, 2008, through December 31, 2017. Buffett selected the S&P 500 Index, Seides selected five hedge funds, and the stakes were earmarked for the winner’s preferred charity. The terms were revised midway through the period by converting the sum invested in bonds to Berkshire Hathaway shares, so the final amount is reported to be in excess of $2.2 million.
The 10-year period included years of dramatic decline for the S&P 500 Index (–37.0% in 2008) as well as above-average gains (+32.4% in 2013), so there was ample opportunity for clever managers to attempt to outperform a buy-and-hold strategy through a successful timing strategy. For fans of hedge funds, however, the results were not encouraging. For the nine-year period from January 1, 2008, through December 31, 2016, the average of the five funds achieved a total return DIMENSIONAL FUND ADVISORS 3 of 22.0% compared to 85.5% for the S&P 500 Index.12 (Results for 2017 have not yet been reported.)
Having fallen far behind after nine years, Seides graciously conceded defeat in mid-2017. But he pointed out in a May 2017 Bloomberg article that in the first 14 months of the bet, the S&P 500 Index declined roughly 50% while his basket of hedge funds declined less than half as much. He suggested that many investors bailed out of their S&P 500-type strategies in 2008 and never participated in the recovery. Hedge fund participants, he argued, “stood a much better chance of staying the course.”
Seides makes a valid point—long run returns don’t matter if the strategy is abandoned along the way. And there is ample evidence that some mutual fund investors sold in late 2008 and missed out on substantial subsequent gains. But do hedge funds offer the best solution to this problem? We think educating investors about the unpredictability of capital market returns and the importance of appropriate asset allocation will likely prove more fruitful than paying fees to guess where markets are headed next. A hypothetical global diversified allocation of 60% equities and 40% fixed income13 still outperformed the hedge fund basket over the same nine years (56.6% vs. 22.0% in total returns).
Over any time period some managers will outperform index-type strategies, although most research studies find that the number is no greater than we would expect by chance. Advocates of active management often claim that this evidence does not concern them, since superior managers can be identified in advance by conducting a thorough assessment of manager skills. But this 10-year challenge offers additional evidence that investors will most likely find such efforts fail to improve their investment experience.
EXPECT THE UNEXPECTED
Financial markets surprised many investors in 2017, but then again they have a long history of surprising investors. For example, from 1926–2017, the annualized return for the S&P 500 Index was 10.2%. But returns in any single year were seldom close to this figure. They fell in a range between 8% and 12% only six times in the last 92 years but experienced gains or losses greater than 20% 40 times (34 gains, six losses). Investors should appreciate that many times realized returns may be far different from expected returns.
For a number of investors, 2017 was a paradox. The harder they tried to enhance their results by paying close attention to current events, the more likely they failed to capture the rate of return the capital markets offered.
New Year’s resolution: Keep informed on current events as a responsible citizen. Let the capital markets decide where returns will be generated.
Dimensional 60/40 Balanced Strategy Index Rebalanced monthly. For illustrative purposes only. The balanced strategy index is not a recommendation for an actual allocation. All performance results are based on performance of indices with model/backtested asset allocations; the performance was achieved with the benefit of hindsight; it does not represent actual investment strategies, nor does it reflect fees associated with investing. Actual results may vary significantly. The underlying Dimensional indices of the balanced strategy index have been retrospectively calculated by Dimensional Fund Advisors LP and did not exist prior to their inceptions dates. Other periods selected may have different results, including losses. Backtested index performance is hypothetical, is not actual performance and is provided for informational purposes only. Backtested performance results assume the reinvestment of dividends and capital gains. Additional information is available upon request.
Lauren R. Rublin, “Stocks Could Post Limited Gains in 2017 as Yields Rise,” Barron’s, January 14, 2017. 2. Inflation data © 2018 and earlier, Morningstar. All rights reserved. Underlying data provided by Ibbotson Associates via Morningstar Direct. 3. As measured by the MSCI All Country World IMI Index (net dividends). 4. Adam Shell, “How Will Stocks Make Out in 2017?” USA TODAY, December 24, 2016. 5. S&P data © 2018 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. 6. As measured by the MSCI Korea IMI Index (net dividends). MSCI data © MSCI 2018, all rights reserved. 7. Jonathan R. Laing, “China’s Debt Addiction Could Lead to Financial Crisis,” Barron’s, November 5, 2016. 8. As measured by the MSCI China IMI Index (net dividends). MSCI data © MSCI 2018, all rights reserved. 9. Neal E. Boudette, “Car Sales End a 7 Year Upswing, With More Challenges Ahead,” New York Times, January 3, 2018. 10. Steven Russolillo, “Yellow Flag Waves Over Auto Stocks,” Wall Street Journal, January 4, 2017. 11. Ford Motor, General Motors, and Fiat Chrysler returns provided by Bloomberg Finance LP. 12. Hedge fund data from Chairman’s Letter, Berkshire Hathaway Inc. 2016 annual report. 13. Global diversified allocation is the Dimensional 60/40 Balanced Strategy Index. Indices cannot be invested into directly. See Appendix for index description. Past performance is no guarantee of future investment results
Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA / SIPC. Investment
Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Lighthouse Services Insurance & Investments
and Cambridge are not affiliated. Indices mentioned are unmanaged, do not incur fees, and cannot be invested into directly. Past performance is no
guarantee. When you access other linked websites, you assume total responsibility and risk of the websites you are linking to caveat emptor. All
expressions of opinion are subject to change without notice in reaction to shifting market conditions. All materials presented are compiled from sources
believed to be reliable and current, but accuracy cannot be guaranteed. Article are provided for informational purposes, and it is not to be construed as
an offer, solicitation, recommendation or endorsement of any particular security, products, or services in Alabama, Florida, Georgia, and Tennessee. No
offers may be made or accepted from any resident outside the specific state(s) referenced
As investors ring in the new year, some may see the occasional headline about the “January Indicator” or “January Barometer.” This theory suggests that the price movement of the S&P 500 during the month of January may signal whether that index will rise or fall during the remainder of the year. In other words, if the return of the S&P 500 in January is negative, this would supposedly foreshadow a fall for the stock market for the remainder of the year, and vice versa if returns in January are positive.
Rather than trying to beat the market based on hunches, headlines, or indicators, investors who remain disciplined can let markets work for them over time.
So have past Januarys’ S&P 500 returns been a reliable indicator for what the rest of the year has in store? If returns in January are negative, should investors sell stocks? Exhibit 1 shows the monthly returns of the S&P 500 Index for each January since 1926, compared to the subsequent 11-month return (i.e., the return from February through December). A negative return in January was followed by a positive 11-month return about 60% of the time, with an average return during those 11 months of around 7%.
This data suggests there may be an opportunity cost for abandoning equity markets after a disappointing January. Take 2016, for example: The return of the S&P 500 during the first two weeks of this year was the worst on record for that period, at -7.93%. Even with positive returns toward the end of the month, the S&P 500 returned -4.96% in January 2016, the ninth-worst January return observed from 1926 to 2017. But a subsequent rebound of 18% from February to December resulted in a total calendar year return of almost 13%. An investor reacting to January’s performance by selling out of stocks would have missed out on the gains experienced by investors who stuck with equities for the whole year. This is a good example of the potential negative outcomes that can result from following investment recommendations based on an “indicator.”
Over the long term, the financial markets have rewarded investors. People expect a positive return on the capital they supply, and historically, the equity and bond markets have provided meaningful growth of wealth. As investors prepare for 2018 and what the year may bring, we should remember that frequent changes to an investment strategy can hurt performance. Rather than trying to beat the market based on hunches, headlines,
or indicators, investors who remain disciplined can let markets work for them over time.
Bitcoin and other cryptocurrencies are receiving intense media coverage, prompting many investors to wonder whether these new types of electronic money deserve a place in their portfolios. Cryptocurrencies such as bitcoin emerged only in the past decade. Unlike traditional money, no paper notes or metal coins are involved. No central bank issues the currency, and no regulator or nation state stands behind it.
Instead, cryptocurrencies are a form of code made by computers and stored in a digital wallet. In the case of bitcoin, there is a finite supply of 21 million, of which more than 16 million are in circulation. Transactions are recorded on a public ledger called blockchain. People can earn bitcoins in several ways, including buying them using traditional fiat currencies or by “mining” them—receiving newly created bitcoins for the service of using powerful computers to compile recent transactions into new blocks of the transaction chain through solving a highly complex mathematical puzzle.
For much of the past decade, cryptocurrencies were the preserve of digital enthusiasts and people who believe the age of fiat currencies is coming to an end. This niche appeal is reflected in their market value. For example, at a market value of $16,000 per bitcoin, the total value of bitcoin in circulation is less than one tenth of 1% of the aggregate value of global stocks and bonds. Despite this, the sharp rise in the market value of bitcoins over the past weeks and months have contributed to intense media attention.
What are investors to make of all this media attention? What place, if any, should bitcoin play in a diversified portfolio? Recently, the value of bitcoin has risen sharply, but that is the past. What about its future value? You can approach these questions in several ways. A good place to begin is by examining the roles that stocks, bonds, and cash play in your portfolio.
Companies often seek external sources of capital to finance projects they believe will generate profits in the future. When a company issues stock, it offers investors a residual claim on its future profits. When a company issues a bond, it offers investors a promised stream of future cash flows, including the repayment of principal when the bond matures. The price of a stock or bond reflects the return investors demand to exchange their cash today for an uncertain but greater amount of expected cashin the future. One important role these securities play in a portfolio is to provide positive expected returns by allowing investors to share in the future profits earned by corporations globally. By investing in stocks and bonds today, you expect to grow your wealth and enable greater consumption tomorrow.
Government bonds often provide a more certain repayment of promised cash flows than corporate bonds. Thus, besides the potential for providing positive expected returns, another reason to hold government bonds is to reduce the uncertainty of future wealth. And inflation-linked government bonds reduce the uncertainty of future inflation-adjusted wealth.
Holding cash does not provide an expected stream of future cash flow. One US dollar in your wallet today does not entitle you to more dollars in the future. The same logic applies to holding other fiat currencies — and holding bitcoins in a digital wallet. So we should not expect a positive return from holding cash in one or more currencies unless we can predict when one currency will appreciate or depreciate relative to others.
The academic literature overwhelmingly suggests that short-term currency movements are unpredictable, implying there is no reliable and systematic way to earn a positive return just by holding cash, regardless of its currency. So why should investors hold cash in one or more currencies? One reason is because it provides a store of value that can be used to manage near-term known expenditures in those currencies.
With this framework in mind, it might be argued that holding bitcoins is like holding cash; it can be used to pay for some goods and services. However, most goods and services are not priced in bitcoins. A lot of volatility has occurred in the exchange rates between bitcoins and traditional currencies. That volatility implies uncertainty, even in the near term, in the amount of future goods and services your bitcoins can purchase. This uncertainty, combined with possibly high transaction costs to convert bitcoins into usable currency, suggests that the cryptocurrency currently falls short as a store of value to manage near-term known expenses. Of course, that may change in the future if it becomes common practice to pay for all goods and services using bitcoins. If bitcoin is not currently practical as a substitute for cash, should we expect its value to appreciate?
SUPPLY AND DEMAND
The price of a bitcoin is tied to supply and demand. Although the supply of bitcoins is slowly rising, it may reach an upper limit, which might imply limited future supply. The future supply of cryptocurrencies, however, may be very flexible as new types are developed and innovation in technology makes many cryptocurrencies close substitutes for one another, implying the quantity of future supply might be unlimited. Regarding future demand for bitcoins, there is a non-zero probability that nothing will come of it (no future demand) and a non-zero probability that it will be widely adopted (high future demand).
Future regulation adds to this uncertainty. While recent media attention has ensured bitcoin is more widely discussed today than in years past, it is still largely unused by most financial institutions. It has also been the subject of scrutiny by regulators. For example, in a note to investors in 2014, the US Securities and Exchange Commission warned that any new investment appearing to be exciting and cutting-edge has the potential to give rise to fraud and false “guarantees” of high investment returns. Other entities around the world have issued similar warnings. It is unclear what impact future laws and regulations may have on bitcoin’s future supply and demand (or even its existence). This uncertainty is common with young investments.
All of these factors suggest that future supply and demand are highly uncertain. But the probabilities of high or low future supply or demand are an input in the price of bitcoins today. That price is fair, in that investors willingly transact at that price. One investor does not have an unfair advantage over another in determining if the true probability of future demand will be different from what is reflected in bitcoin’s price today.
WHAT TO EXPECT
So, should we expect the value of bitcoins to appreciate? Maybe. But just as with traditional currencies, there is no reliable way to predict by how much and when that appreciation will occur. We know, however, that we should not expect to receive more bitcoins in the future just by holding one bitcoin today. They don’t entitle holders to an expected stream of future bitcoins, and they don’t entitle the holder to a residual claim on the future profits of global corporations.
None of this is to deny the exciting potential of the underlying blockchain technology that enables the trading of bitcoins. It is an open, distributed ledger that can record transactions efficiently and in a verifiable and permanent way, which has significant implications for banking and other industries, although these effects may take some years to emerge.
When it comes to designing a portfolio, a good place to begin is with one’s goals. This approach, combined with an understanding of the characteristics of each eligible security type, provides a good framework to decide which securities deserve a place in a portfolio. For the securities that make the cut, their weight in the total market of all investable securities provides a baseline for deciding how much of a portfolio should be allocated to that security.
Unlike stocks or corporate bonds, it is not clear that bitcoins offer investors positive expected returns. Unlike government bonds, they don’t provide clarity about future wealth. And, unlike holding cash in fiat currencies, they don’t provide the means to plan for a wide range of near-term known expenditures. Because bitcoin does not help achieve these investment goals, we believe that it does not warrant a place in a portfolio designed to meet one or more of such goals.
If, however, one has a goal not contemplated herein, and you believe bitcoin is well suited to meet that goal, keep in mind the final piece of our asset allocation framework: What percentage of all eligible investments do the value of all bitcoins represent? When compared to global stocks, bonds, and traditional currency, their market value is tiny. So, if for some reason an investor decides bitcoins are a good investment, we believe their weight in a well-diversified portfolio should generally be tiny.
Because bitcoin is being sold in some quarters as a paradigm shift in financial markets, this does not mean investors should rush to include it in their portfolios. When digesting the latest article on bitcoin, keep in mind that a goals-based approach based on stocks, bonds, and traditional currencies, as well as sensible and robust dimensions of expected returns, has been helping investors effectively pursue their goals for decades.
1. Source: Bitcoin.org.
2. As of December 14, 2017. Source: Coinmarketcap.com.
3. A currency declared by a government to be legal tender.
4. Per Bloomberg, the end-of-day market value of a bitcoin exceeded $16,000 USD for the first time on December 7, 2017.
5. Describes an outcome that is possible (or not impossible) to occur.
6. “Investor Alert: Bitcoin and Other Virtual Currency-Related Investments,” SEC, 7 May 2014
7. Investors should discuss the risks and other attributes of any security or currency with their advisor prior to making any investment.
The opinions expressed are those of the author and are subject to change. The commentary above pertains to bitcoin cryptocurrency. Certain bitcoin offerings may be considered a security and may have different attributes than those described in this paper. Dimensional does not offer bitcoin. This material is not to be construed as investment advice or a recommendation to buy or sell any security or currency. Investing involves risks including possible loss of principal. Stocks are subject to market fluctuation and other risks. Bonds are subject to increased risk of loss of principal during periods of rising interest rates and other risks. There is no assurance that any investment strategy will be successful. Diversification does not assure a profit or protect against loss. Dimensional Fund Advisors LP is a registered investment advisor with the Securities and Exchange Commission.
Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA / SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Lighthouse Services Insurance & Investments and Cambridge are not affiliated. Indices mentioned are unmanaged, do not incur fees, and cannot be invested into directly. Past performance is no guarantee. When you access other linked websites, you assume total responsibility and risk of the websites you are linking to caveat emptor. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. All materials presented are compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. Article are provided for informational purposes, and it is not to be construed as an offer, solicitation, recommendation or endorsement of any particular security, products, or services in Alabama, Florida, Georgia, and Tennessee. No offers may be made or accepted from any resident outside the specific state(s) referenced.Read More
What is Group Supplemental Health Insurance?
When it comes to a majority of Americans, the only health insurance benefits they have are the plans offered through their employer. For some of those employees that’s enough, but what about the rest? If you have a family, dependents or pre-existing conditions, your insurance benefits may not cover it all and that’s where GAP Insurance comes in. GAP coverage helps lower employee deductibles, reduce out of pocket expenses and helps save of ever rising premium costs. The team at Lighthouse Services knows that by supplementing your primary insurance plan now, you may be saving yourself from financial disaster in the future. Our insurance plans are designed to sync with your major medical plan and act as one cohesive medical insurance plan.
Choosing the Right Health Insurance Plan
Most employers offer more than one option when it comes to the insurance and benefit plans you have to choose from. Choosing the right plan for you is the first step in protecting your health and financial future. However, having the top medical insurance plan doesn’t mean you pay your premium and enjoy an all-access pass to healthcare. The majority of health insurance plans for employees only cover a certain percentage of medical bills and expenses. A GAP Insurance plan helps you cover the out-of-pocket costs incurred along the way, like co-payments and deductibles. Lighthouse Services has access to plans that are designed to mirror benefits provided by major medical plans but act as true secondary health insurance plans. These plans have no exclusions or limitations outside of the major plan and have NO pre-existing clauses.
3 Great Benefits of GAP Insurance:
1. Reduce out of pocket exposure
2. Save Premium Cost
3. Lower Employee Deductibles
Covering the “GAP”
By having health insurance benefits you aren’t guaranteed against debt from your medical expenses. Medical costs have skyrocketed across the United States and many people end up in financial distress from the process. However, having medical gap insurance helps lessen the burden by providing coverage for many things that your regular health insurance plan doesn’t cover. A supplemental GAP medical plan does not increase the benefits you have through your primary insurance plan but it helps cover the percentages and expenses your core plan doesn’t. GAP insurance plans helps employers provide the extra coverage that their employees need.
GAP insurance plans offer options for financial protection beyond your major medical plan and can help ease the financial impact when you have unexpected medical costs. When an illness or accident happens, a medical GAP plan will pay benefits according to which policy you select. Contact the professional agents at Lighthouse Services to help you decide if a GAP policy is needed and which one is right for you. With over 17 years in the industry, Lighthouse Services is your perfect choice for your insurance and financial planning needs. Call us at 256-964-9580 today and let us help you!Read More
You made a great choice when you enrolled in your company’s 401k plan but now you’re responsible for your own retirement account. The team at Lighthouse Services knows that it’s not always easy to save money and you definitely don’t want to waste invested money when you leave a job.
With help from our unique investment planning services and knowledge of IRA’s and ROTH IRA rollovers, we do our best to ensure that you have the knowledge you need to make the best decision for your future. Retirement has a way of sneaking up on you faster than you think. At Lighthouse services, we can match the best low-cost investment strategy with your goals.
Simply rolling over your investments into your new employer’s plan while an easy option may not match your retirement goals. In fact, the new DOL (Department of Labor) rule strives to better match retirement accounts with retiree’s goals or best interest.
What if you could increase your odds of success? Better diversification, reduced cost, custom fit aligned with your specific retirement goals. Making the right choices with your money, when it comes to changing jobs, means taking the time to do it right so you can make the most of your investment and retirement.
Understanding Your 401k and IRA
When it comes to deciding what to do with your 401k from your former employer, you have several options. Leaving it at your old employer can seem fine. Too often we hear about employees who simply lost contact or failed to keep up with their former companies’ retirement plan changes. You would hate to lose money simply because you didn’t have time to read an important email you meant to read later.
While you can always cash out your 401k, this is the worst option by far. Taxes and penalties will quickly eat away your hard-earned money!
You’ve Chosen to Rollover Your Retirement Account. Now what?
Lighthouse services can walk you through the rollover process, from start to finish. Our unique investment planning software simplifies all the options and lets you see a clear path to retirement.
Our team will assist you in rolling your money over to a new or existing IRA. The processes of receiving your previous 401(k) can vary but we will walk you through the entire process for each previous 401(k) you have.
Once the money has been rolled over, our one on one process will assist you with the decision-making process of where to invest to meet your goals. We will explain your options and how easy it is mapping out your best course of action for your future retirement.
Changing jobs or careers comes with its own sets of stress and problems, but taking care of your future retirement monies should not be one of them.Call us today at 256-964-9580 or find out more about us and let us help you and your future.Read More