Can Investments Be Guaranteed Against Loss ?

[Profreedomokie]

I just retired and have been talking to several investment companies about investing with one of them. One company claims that your money is guaranteed against loss with them no matter what the market does. They say they insure your money and what it makes against loss. Is this possible?

 

[deerstalker]

Lincoln financial guarantees if the market drops, you won't loose what you gain,BUT they lock up your money for I think 8 to 10 years, you can move it or nothing. been there done that. I do not recommend them. I would recommend Morgan Stanley.. just my $0.02..

 

[GlockPride]

Annuities may be what you seek.

 

[CHenry]

Do not use an investment company. YOU need to be the only mannager of your money.
Go to daveramsey dot com, click on smartvestor, find one in your area and call and make an appointment. They will train YOU to manage and invest. I recommend a ROTH IRA and one that earns 12% annually is easy to find. And the only way to not lose money is to not sell when there is a lull in the market. Lulls are normally short periods of time. The stock market has never completely gone tits up, its just had some really bad lulls (1920, 2008) and those times are like a half price sale. When there is a lull, great time to buy instead of sell. once you have started growing that golden goose, the lulls in the market simply mean a smaller return that year, not an actual loss usually, unless you were to cash it all out and there is rarely a good reason to do that.

 

[SMS]

Interest is based, in part, on risk. A truly risk free investment would pay little interest.

 

[harley128]

Sure you can lose money in the market. IE: company goes belly-up and stock is worthless. I can give you some good examples of that ! LOL Also, company that is guaranteeing you (Lincoln Financial) goes out of business.......... You're insured to a point, but only to a point........... Ask those who lost with Bernie Madoff.......
Buy on margin, and face a margin call............another loss if you can't cover.
You bought a bond and the company defaults on it.
You bought a foreign stock and that country suddenly decides to devalue its currency.
You bought an annuity and that company goes belly up down the road. You're protected up to a point

I agree that all of the above are not the norm, but the possibility exists nonetheless.
There are no sure things

 

[CHenry]

Sure you can lose money in the market. IE: company goes belly-up and stock is worthless. I can give you some good examples of that ! LOL Also, company that is guaranteeing you (Lincoln Financial) goes out of business.......... You're insured to a point, but only to a point........... Ask those who lost with Bernie Madoff.......
Buy on margin, and face a margin call............another loss if you can't cover.
You bought a bond and the company defaults on it.
You bought a foreign stock and that country suddenly decides to devalue its currency.
You bought an annuity and that company goes belly up down the road. You're protected up to a point

I agree that all of the above are not the norm, but the possibility exists nonetheless.
There are no sure things

Never invest in single stocks. Mutual funds are safe.

 

[GlockPride]

Never invest in single stocks. Mutual funds are safe.

mutual funds are safe(r). I believe disingenuous to say ‘safe’. Sorry, small letter, big potential difference. Carry on!

 

[CHenry]

mutual funds are safe(r). I believe disingenuous to say ‘safe’. Sorry, small letter, big potential difference. Carry on!

Hard to get what I want said clearly on a keyboard when I'm doing flyby post, but yes, safer.

 

[Roadrunner45]

**To "guarantee" against loss, you have to have faith in the backer of the investment.**
Bonds in the US federal reserve are usually considered the safest (what most people consider "guaranteed"). Know that the backer of the investment is the FED in this case. They have historically been capable to pay on these bonds. There is a risk that the FED is not able to always pay back, but that is right now considered small.
Private annuities are backed by a private company. They 'guarantee' a return on investment, but that is only as the company is able to pay back the investment. There is always some risk the company is not able to repay on the investment.