5 Financial Lessons From the Past That Can Help Us Today

Available for Interviews: Harry Abrahamsen

Harry J. Abrahamsen is Founder & CEO Abrahamsen Financial Group. His company offers customized wealth management solutions—creating plans and portfolios that protect, preserve, and grow clients’ wealth. He was selected as one of the ten most dependable Wealth Managers in the Mid-Atlantic as published in Forbes magazine.

What Harry Abramhamsen can say in an interview about Learning from the 2008 Financial Crisis and the Global Pandemic:

The pandemic crisis happened, and people want to look at the past to solve the problems of the future. People need to have contingency plans in place so when something like this happens, they are prepared.

Here are some important lessons learned
from the financial ghosts of the past:

  1. Maintain liquidity. Have money accessible in a bank savings account or a mature limited pay whole life insurance policy. Don’t always focus on a rate of return.
  2. Protect against inflation. The low-interest-rate environment we are living in is challenging for retirees. Bank savings accounts, CDs, and fixed annuities cannot keep up with inflationary pressure. Remember that bonds, variable annuities, mutual funds, and stocks are risk-based investments that can all lose value.
  3. Diffuse the tax bomb and protect against increases in taxes, both state and federal. Utilize post- and pre-tax strategies to reduce the tax bite. This requires macroeconomic thinking. It is important to have an RMD strategy, in place, especially if you do not need money. It is important to learn about RMD friendly products.
  4. Protect against market risk. Utilizing a covered income strategy or buffer strategy will allow a retiree to use a higher withdrawal rate to create the desired retirement income plan. These strategies will reduce the risk of running out of money.
  5. Investment plan vs. Retirement income plan. Most people have an investment plan, but no one has a retirement income plan. An investment plan is an accumulation-only plan, a retirement income plan is a distribution plan PLUS an accumulation plan. It is not an either/or.

People need to build financial strategies, so they don’t lose money. They need to grow money without losing it. Sometimes people think planning is about an asset allocation or chasing a rate of return; it’s more about capital preservation minimizing risk.

It’s not what you make; it’s what you keep.


Interview: Harry Abrahamsen

Harry J. Abrahamsen is Founder & CEO Abrahamsen Financial and is one of the leading financial strategists in personal financial economics. He has been quoted in numerous national publications, such as Forbes, On Wall Street, Think Advisor, Financial Planning, Bottom Line Personal, Smart Money and cited in the Encyclopedia Britannica. An independent research firm has selected Harry James Abrahamsen as “The 10 Most Dependable Wealth Managers in the Mid-Atlantic” published in the Forbes December 2007 issue Investment Guide. Harry Abrahamsen has five children and resides in New Jersey.

Jo Allison
Managing Editor
Director of Public Relations
Success In Media, Inc.

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