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First Senior Financial Group
Sets itself apart from all other financial firms
# 1 We only work with people in retired years.
# 2 We will never put any of your investment accounts at market risk.
#3 Our financial model works in any market environment.
You may not be using your investments for their designed purpose.Mutual funds were designed to diversify your stock holdings across many investment sectors, with professional management in place, because of the risk of losing principal associated with individual stock investing. Of course, there are fees associated with this management. These funds are not managed by your financial advisor, but by an independent fund manager. Your advisor gets to sit back on automatic pilot, while these fund managers do the work, and your advisor collects a portion of all the fees. This works fine in the Accumulation Phase, but without the sustained period of investment time, it doesn't work so well in the Retirement Phase. Mutual fund investing, like all market risk investments, requires a sustained period of time to ensure growth of the investment because of fluctuation in the economy and the markets.
CDs and other bank instruments were never designed as accumulating instruments. They were never intended as long-term investments. Between taxes on the accumulation of interest, 5% yields or less, and inflation, keeping your savings in these instruments will cause your money to erode. These instruments were intended as short-term, safe “parking places” for your money while you decided where to put it for growth. Bonds are designed as a fixed, non-guaranteed income instrument, and if you're not taking that income and are instead reinvesting it into more bonds, then you are paying taxes on money you are not even using. Bonds, too, were never designed to be an accumulating financial instrument.
If you are using these instruments in ways other than their designed purpose, you can greatly improve your financial efficiency, both tax and growth-wise. Otherwise, you are only benefiting the firms that house your accounts. You are paying those annual taxes, while the financial firms make a profit from your inefficiency by reinvesting your taxable yields and booking new commissions.
The reason First Senior Financial Group's model works in every market environment is that we use our financial vehicles for their designed purpose.
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