It is no secret that healthcare expenses will have a compelling impact on the quality of life of all Baby Boomers in retirement, and many believe that costs will eventually swell beyond their control.
“The assumption on expenses is accurate; however, a safe and secure investment now can create a reservoir that can be tapped when unforeseen healthcare expenses arise down the road,” advises Ron Mastrogiovanni, CEO of HealthView Services and one of the founders of FundQuest.
Unlike traditional mutual funds, a new, innovative investment vehicle called absolute return funds provide investors with steady, stable returns in both bull and bear markets. Given the current instability in global markets, there is ostensibly a demand for a mutual fund designed to limit losses while achieving an intended return over inflation.
Established in late 2008, absolute return funds have been structured so that fund managers can strategically migrate from one asset class to another.
They’ve also generated their fair share of controversy, as some suggest that any product that appears to be too good to be true may indeed be … well, too good to be true.
Mastrogiovanni offers this example: In a down market, a manager of a conventional equity growth fund must consistently comply with a prospectus that requires the fund manager to maintain a portfolio of equity growth securities.