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What I Like and Why

All stock index fund

  1. Get virtually all of the upside
  2. Very low expenses
  3. Liquid every business day

What I don't like about all stock index fund

  1. Potentially loss of capital
  2. Fair market value fluctuates

Investment-grade individual bonds

  1. Issuer "bound" to return principal at maturity or call
  2. Principal known in advance
  3. Issuer "bound" to pay stated interest - typically twice per year
  4. Interest rate known in advance - predictable.
  5. Liquid every business day

What I don't like about individual bonds

  1. Historically lower return than stocks
  2. Interest-rate risk. When a bond matures a new bond might only be available at a lower interest rate
  3. Fair market value fluctuates before maturity or call

Guaranteed (joint) lifetime income
with market participation
and access to your money

  1. Guaranteed (joint) lifetime income paid as long as one spouse is alive
  2. Market participation
  3. Access to your money
  4. Guaranteed amount or more paid every time

What I don't like about "guaranteed lifetime income ..."

  1. Expenses
  2. So lower return than e.g. underlying index
  3. Complexity

How much of your retirement nest egg would you like in each?

The views stated in this letter are not necessarily the opinion of Cetera Advisors LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. Investors should consider their financial ability to continue to purchase through periods of low price levels. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.

Exchange traded funds (ETFs) and mutual funds are sold only by prospectus. Investing in ETFs and mutual funds is subject to risk and potential loss of principal. ETFs incur trading and commission costs similar to stocks and frequent trading can negate the lower cost structure of an ETF. There is no assurance or certainty that any investment or strategy will be successful in meeting its objectives. Investors should consider the investment objectives, risks and charges, and expenses of the fund carefully before investing. The prospectus contains this and other important information about the fund. Contact your registered representative of the issuing company to obtain a prospectus, which should be read carefully before investing or sending money.The return and principal value of fixed income securities fluctuate with changes in market conditions. If bonds are not held to maturity, they may be worth more or less than their original value. All investing involves risk, including the possible loss of principal.  There is no assurance that any investment strategy will be successful. Guarantees are based on the claims paying ability of the issuer.