Mattson Financial Blog
Generally, I don’t like to pass along personal client stories unless I have specific written consent by the client. Recently, a client asked me to share their story — a story set in the month of February and on Valentine’s Day.
For the past 27 years, our client has taken his wife to a steak and lobster dinner. They have an agreement that every February 14, they go to dinner together and enjoy steak and lobster, specifically.
This started as a tradition on the day the client asked his wife to marry him on February 14 all those years ago. In celebration of their engagement, they went out for, you guessed it, a steak and lobster dinner.
When this client first came on board, he told me, “Whatever happens, I want to be guaranteed that steak and lobster dinner every February 14.” I said we could do that and he became our client. So far, we’ve helped him achieve this goal.
Even in 2008 when the markets went negative, our client could still take his wife out for their standing Valentine’s Day date. He could do it because his portfolio gave him the confidence he needed to make the perfect dinner happen.
This is because his portfolio included annuities. His annuities kept his portfolio out of a loss position, so even throughout the great recession, he and his wife enjoyed steak and lobster every year.
Annuities do not act like bonds. Bonds do not act like stock. Stocks do not act like real estate. Everything serves a distinct purpose in your portfolio — and that includes gold.
Annuities are a great way to always have the availability of income, no matter what the market does. When you’re invested in the stock, you have to deal more with the ups and downs of the market. You can take advantage of market movements, but there’s no guarantee you’ll come out on top at the end of the year.
To put things into perspective, 2019 was a great year for the stock market, but when you mix in the losses from late 2018, 2019 turns out to be an average year, which equals average returns, if that. Despite record numbers, most people aren’t seeing any extraordinary returns.
An annuity helps break past the ups and downs. It’s what allows our client and his wife — or any of us — to enjoy a lovely steak and lobster dinner on Valentine’s Day.
This year, I can report that my client and his wife will be enjoying their traditional Valentine’s Day dinner outside the United States. They decided to change things up slightly. Instead, they’ll be dining in Paris! What can I say besides bon appétit!