Mehran Rad discusses the importance of market loss protection
Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/interview-with-mehran-rad-founder-president-of-rap-financial-discussing-market-loss-protection/
Mehran Rad discusses the importance of market loss protection in financial planning. He explains that market loss protection involves techniques to prevent a decrease in the value of investments and serves as a safety net during market volatility. Mehran emphasizes the need to align market loss protection strategies with individual risk tolerance and financial goals. He highlights the importance of considering the cost of protection and the investment timeline when integrating market loss protection into a financial plan.
Market loss protection is a critical component of financial planning, as emphasized by Mehran Rad. Implementing strategies to mitigate or prevent losses in investments is essential to safeguarding investments from decreasing in value and providing a safety net in case of market volatility. This protection is crucial because all investments carry inherent risks, and losses are inevitable at some point. It is important for individuals to align their financial planning with their risk profile, as risk tolerances vary.
Mehran said: “The stop-loss orders, they’re designed to limit an investor’s loss.”
Common methods used to implement market loss protection include diversification, hedging, stop-loss provisions, and fixed index annuities. Diversification involves spreading investments across various asset classes to reduce the impact of poor performance in a single asset on the overall portfolio. Hedging utilizes financial instruments like options and futures to offset potential losses in investments. Stop-loss provisions trigger a sale when an asset reaches a predetermined price or percentage loss, limiting potential losses.
In addition to these traditional methods, fixed index annuities were introduced by Mehran as a less commonly discussed tool for market loss protection. These annuities, offered by insurance companies, credit rates based on a market index while guaranteeing that the principal will not decrease even if the market experiences a downturn. Fixed index annuities provide a balance between safety and potential gains, allowing individuals to participate in market gains while protecting against losses.
In conclusion, market loss protection is crucial in financial planning to safeguard investments and mitigate risks. By understanding and implementing strategies like diversification, hedging, stop-loss provisions, and fixed index annuities, individuals can better prepare for market volatility and protect their assets during both the accumulation and distribution phases of their financial journey. Working with an experienced advisor to design a customized plan tailored to individual needs is essential to ensure effective market loss protection.
Video Link: https://www.youtube.com/embed/LEiQSqUsryM
About Mehran Rad
Mehran Rad is an Investment Advisor Representative with a passion in helping retirees, and those approaching retirement, to avoid the common financial mistakes of retirement through comprehensive financial planning.
As a Fiduciary, Mehran works diligently with his clients to help them take control of their financial future through education and use of financial strategies designed to help them with the critical areas of retirement planning, including:
- Retirement Income & Social Security Planning.
- Tax Minimization Strategies.
- Investment & Risk Management Strategies.
- Estate & Legacy Planning.
Mehran started in real estate development and investment back in 1988 and has been in the financial service industry for the last 22 years. He is a graduate of Guilford College with a BS degree in Business and a minor in Economics. Mehran has passed the NASD Series 65 (Investment Advisor Representative) and has met all requirements for Life insurance and Long-Term Care licenses in several States.
Personal
Mehran grew up in Chapel Hill, NC, and is a big Tarheels fan. Soccer has been a big part of his life as he played in college, and several years after. All three of his boys have played professionally for teams such as Sporting Kansas City, Hartford Athletic, Huntsville FC, and Portland Timbers.
Outside of the financial world, Mehran enjoys walking, golf, hiking the Arizona trails, and watching soccer, but above all, he loves spending quality time with his family.
Learn More: https://www.retirementap.com
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