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November 30, 2011 at 08:14 AM
I have to confess that I thought November would improve things, especially after the summer angst and teeth-gnashing over the market’s rotten performance during July and August.
But even though U.S. investors seem to have relatively little actually invested in Europe, there is panic over the thought that The Eco-Mess there may spread to this country. So, unusually, the Thanksgiving long weekend was mired in investment worry. (Thanksgiving itself was dandy, at least with my family, and I hope with yours, too.)
So, let’s keep our eyes focused on the ball and, in our business, the “ball” is the customer. If he or she understands risk and volatility, then a good mutual fund (American Funds Capital Income Builder, Ivy Asset Strategy, First Eagle Overseas and James Balanced: Golden Rainbow are examples that come to mind; there are many others) will usually be perfectly fine, even if monthly withdrawals of 5% yearly are taken.
If the customer cannot tolerate risk and volatility, then a third-party manager like BTS might suit – for investors looking for annual returns of 6% to 9%, BTS, located in Lexington, Mass., has done an excellent job for many years. And, if even some volatility is too much, then one might consider an investment (variable) annuity with an income benefit.
