Stop Your 401K from Bleeding on Wall St. Every Time the Stock Market Goes Down, Here’s How!

Time is said by many to be our greatest asset. We never have enough of it and when it’s gone, we can’t get it back. During our work lives we monetize our time in the form ofblood-money4 wages vs hours and we evaluate the opportunity cost of spending our time doing something more or less financially lucrative. These thoughts can be summarized with the age long expression “time is money”. JPayton Consulting works with people all over the country and offers many solutions to help our clients maximize their time and money resources. Contact Us for more information.

Most Americans spend many years working hard to support their families and to provide a comfortable lifestyle for their loved ones and themselves. Simultaneously, they set aside a portion of those earnings to provide an income after retirement. Pension plans, IRA’s and 401K’s are the primary investment vehicles that are employed. Those funds are spread out amongst various sub accounts within those vehicles for the sake of diversification. One important question to consider is, what do pension plans, IRA’s and 401K’s ALL have in common? The answer is, they are all heavily invested in the stock market. Stocks have subjected investors to several headline-grabbing declines over the past few years. When the entire stock market takes a dramatic drop, so does the value of your retirement account. You were never diversified at all.

For baby boomers, the major stock market “corrections” over the last 30 years have wiped out years of positive portfolio gains leaving investors to spend the next few years recovering what they lost. At the depths of the financial crisis in 2008, the average 401k balance plummeted by 25%. With this cycle repeating itself every few years, investors find themselves right back where they started. It is said that “the definition of insanity is doing the same thing over and over and expecting different results”. If that definition is true, someone approaching their golden years and continuing to invest their retirement funds in the stock market would classify as insane.

One proven option to escape the insanity of relying on the stock market to grow and preserve your retirement assets is to redirect those funds to the purchase of a franchise. A franchise allows you to go into business for yourself but not by yourself. All of the necessary systems, monitors and controls to run a successful business have already been developed and implemented therefore leaving the new franchisee with the sole responsibility of operations. Essentially a new franchisee has purchased a business in a box.

Selecting the type of franchise that is the best fit for a particular owner is very important. Franchises cover all industries and market segments and offer multiple operating structures. They can be owner operated, semi absentee operated or fully absentee operated. When researching these options working with a professional franchise consultant can eliminate a lot of the guesswork and be the source of valuable information and resources that will contribute to your success. Firms like JPayton Consulting have many years of experience working with a large portfolio of franchisors therefore providing viable options and easing the process for potential franchisees. Contact Us for a free, no obligation consultation on how we can help you protect your assets.