DollarTalkNet

The Way Smart Money Diversifies Risk

I have found that 68 year old retirees who have some pension income and a portfolio worth about $1million don't like to bother with managing it themselves, nor do they like to "complicate" things by having to come up with their own ways of creating certain guarantees which pre-packaged investments offer them. Now, this may not make financial sense, upon which we may agree, but it makes emotional sense to the 68 year old. The companies that offer these guarantees understand this. They simplify what seems complicated to the investor, and this is why these companies keep making money, whether we like it or not.