How do you protect yourself from the market?
Many individuals are acquainted with traditional investment avenues such as 401(k)s, but what occurs during periods of market volatility, as observed in recent years?
In the case of investment products like 401(k)s tethered to the market, several implications arise:
Taxation becomes a significant concern, as taxes are incurred upon contribution, growth, and withdrawal.
Exposure to market fluctuations jeopardizes the stability of retirement funds, potentially resulting in substantial losses when security is most crucial in later stages of life. Recovering from such setbacks could entail years of effort.
Age-related limitations impose penalties for withdrawing funds before reaching the age of 59 and a half.
In essence, engaging in market investments demands a clear acknowledgment of associated risks. While the potential for substantial gains exists, exemplified by instances like cryptocurrency windfalls, it is essential to recognize the parallel risk of significant losses. Thus, thorough research into alternative long-term growth strategies is advisable to mitigate risk effectively. Diversification emerges as a fundamental principle in this endeavor.
Relentless offers investment vehicles designed to mitigate market downside risks, devoid of age restrictions, and providing tax-free growth and distributions.
