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Take the Money and RUN, RUN, RUN!

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As you know (or maybe not) April is Financial Literacy Month, and because of that I have been lacking in my post.

For those of you that have seen gains in your 401k, 403b, 457 or IRA over the last few months in this Bull market, PAY ATTENTION!

Historic trends indicate that the S&P 500 gained 7.1 percent from November -April and 1.4 percent from May – October.

There is an old market adage, “sell in May and go away” . Some of you have regained some or all of your losses, so congratulations, you have climbed back to zero.

Let me let you in on a little secret, when portfolio managers essentially clean house before the third quarter statements are sent to shareholders, because nobody wants to get caught holding onto stocks that are not doing well. If a company by the third quarter does not appear it will be able to turn around a fund, fund managers move them out. (this is aptly named mutual fund window dressing). The aggressive selling of stock losers generally positions the market for a yearly low in the October time period

Also, new money tend to flow into the stock market at the beginning of the year as pension funds add to their holdings at this time. That action, along with the last minute investor that is trying to fund retirement accounts before that magical date of April 15th.

So for those of us that embrace the quote from Issac Newton, “what goes up, must come down” I say take at least some of your new found gains and place them in an investment vehicle that will protect your new gains, and provide guaranteed growth with no risk of loss to that principal, consider an indexed annuity offered from a strong company. Remember Warren Buffet said you only have to get wealthy once.

As I write this post, the market closed down 210.79 on 04/28/2016 and has lost another 100 points on 04/29/2016, so for those of you that thought the market would could continue to climb into perpetuity, KNOCK IT OFF!

So whether your money is orange or you chase a green stripe all over town, you believe nation wide is on your side. Take your gains, and RUN RUN RUN, to a safer investment product

IF YOU CHANGE YOUR FINANCIAL THINKING, YOU CAN CHANGE YOUR FINANCIAL FUTURE.

Rick Knight is a licensed financial professional, author and former radio host and can be contacted at knight532@juno.com