Mattson Financial Services - August 2022

SOMETHING’S PHI 4 Common Financial Scams to Avoid

Fraudulent Retailers On social media websites, you may have noticed suspicious online stores featuring deals that are too good to be true. At checkout, instead of being directed to a trusted third-party payment process, these merchants may ask for wire transfers or gift cards. Some of these online stores might not even provide contact information! Fake Debt Collectors Criminals will claim to be government representatives and urge you to settle a debt putting you at risk of being arrested, losing your home, or forfeiting your Social Security benefits. These scammers will ask you to pay the fake balance upfront to avoid any serious repercussions. Remember, government entities do not cold call, so you know to hang up or hit “delete.”

From dating swindles to Bitcoin and cryptocurrency hoaxes, it’s hard to tell the difference between honest offers and scams. Even worse, scams are becoming more creative every day. Here’s a list of some of the most common financial scams to be aware of. Cryptocurrency Scams Bitcoin and other cryptocurrencies have taken the world by storm. Because many don’t understand how they operate, it’s easy for cybercriminals to pull a fast one — or attempt to, anyway. To trick unsuspecting victims, scammers set up fake websites that mimic legitimate cryptocurrency platforms. These sites then either urge you to make investments or they will steal your information outright.

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market has dropped at least 20% from its most recent peak. Bear markets make people very concerned about their money and future income, so you might like updates of what we have been doing during the recent turbulence. Our first priority is ensuring you maintain your current income. We set up an income account for each of our clients to provide for their “Critical Income Need,” and we then refill this account from positions where there are still gains or minimum losses, even though stocks and bonds may be down. We diversify all of our portfolios, so we look at investments not currently experiencing a loss, whether it’s an annuity position or non-correlated assets like gold or real estate. This is where we want to be able to refill your income bucket from, as needed, during these drops in the market. The second action we take is to minimize losses. The markets are down more than 20%, but most of our firm’s overall portfolios have not seen losses approaching that number. It’s because we not only diversify the assets we hold in each portfolio, but we also diversify our investment strategies for investing in those assets. So we get diversified assets and diversified strategies. This gives you choices and opportunities as an investor. Next, we’ll take steps to reposition assets to take advantage of the current market downturns. As I write this, some NASDAQ stocks are down 30% or more. Other assets are down as well throughout multiple indexes. We determine which of those stocks still have value and invest in those risk areas. They will likely recover sooner and give us

a shorter recovery time and when they get back to their highest point, your portfolio has gains, instead of getting back to even. We want your portfolio to return to profit and better standing returns after the market recovers. Finally — and perhaps most difficult of all — we remain patient. Staying with your plan and being patient is one of the most important things you can do when you’re experiencing a bear market. Investing is a long-term prospect, and results don’t happen overnight. Further, rash decisions can lock in losses and worsen your overall financial outlook. Lincoln Financial recently released a notation sharing something important! By investing in the market when it is down 20% or more, those that are patient have an average cumulative return of 61% in five years and 85% in seven years. Of course, we don’t want to wait 5-7 years — that’s why we’re reallocating your assets now to take advantage of the market and get you to even sooner and higher returns after that. But this process takes time which requires being patient and prepared. As always, feel free to call us with any questions or concerns. We’ll be glad to discuss your specific situation in more detail as you wish. At Mattson Financial Services, we have two top concerns: getting you the income flow you need to enjoy retirement and taking advantage of the markets when they are presented.

So, sit back and relax as we get you through all of this noise. I like the Bible verse that says, “This, too, shall pass.”

–Gary Mattson

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