A few years ago, we acquired Eddy. Eddy is a miniature donkey who was virtually homeless. He is just a little guy who was passed around from one house (broker dealer) to another. No one cared a whole lot about him as he was just a little guy, not enough assets to interest most brokers. He was mostly kept in an enclosure with an electric fence which meant that if he tried to wander too far astray, he would get bit by the fence. It reminded me of the broker dealers we run up against when we are small potatoes, so to speak, we are only important when we wish to leave them.
Being in this type of enclosure also meant that he was vulnerable to predators. That is that animals such as dogs could easily go under the fence and attack him, much like the market down turns we experience that always manages to take a little bit (sometimes more than a little) out of us. Plus, the broker dealers depended on the fees and expenses they charged Eddy, money that came directly from his feed trough to theirs.
Eddy came to us looking for a place to feel safe and secure, and perhaps even a little love. We thought that we had the perfect solution for Eddy, a nice large paddock that was safe, predator proof, secure, no electric fence and other equines nearby.
Now Eddy took a different view as he had never been exposed to this kind of situation. His experience had always been exposure and risk, did he have any other choices?
He was very reluctant to enter the safety of the paddock at first. He would come up to the entrance and stop, this is new and different, and he was not sure he was comfortable with this unfamiliar environment.
It would take a little time to adjust to the safety and security of his new home. Finally, after assuring Eddy that he would be safe and secure in his new home by walking him around inside and showing him all the advantages that the new home provided, safety, security, fresh food on a regular basis and clean fresh water. He quickly adapted to his new home and had grown to appreciate our patience in showing him all of the advantages of his new home.
Now he flat refuses to leave!
He loves all the attention he gets on a regular basis and is looking forward to a long and happy retirement. A retirement free from predictors, market risk, and fees.
The situation that Eddy found himself in is exactly what many retirees and soon to be retired also experience. Where to go for help that doesn’t involve market risk. Many brokers and planners insist on blends of assets that they feel will produce an adequate return but are exposed to market risk. They seem to forget that all Eddy wants is safety, security and a lifetime income stream.
Eddy wants to feel safe in his world, just like all of us. Eddy knows that income that cannot ever be outlived is less stressful, more meaningful and accomplishes the goal of steady re-occurring income.
Maybe it is time for you to discover what Eddy discovered, he learned about the benefits of annuities and how they can provide guaranteed income without market risk.
P.S. Eddy does seem to enjoy putting on the harness now and then and taking the grandkids for a ride now and then in the cart. You know how grandparents are.