June 2021

The Financial Sector

The financial sector makes up 13.7% of the S&P 500, making it the third-largest sector in the market out of eleven. That means it’s important for you to know what makes up the financial sector and how you should invest in it.

When you think of financials, or specifically financial services, what do you think of? You probably think of suits and ties on Wall Street. You probably think of companies like JP Morgan, Bank of America, Prudential, and of course, Hoffman Financial Group!

It may sound strange that as part of your S&P 500 portfolio, you can invest your money back into the same companies that are often investing your money. The financial sector is unique in this way because it’s self-circulating. But the truth is the financial sector is going to be a mainstay in your portfolio, no matter if you’re looking to retire soon or if you’re younger and just wanting to invest. The financial sector is going to be a big piece of the puzzle for your investment criteria.

Again, you probably think of large banks when you think of stocks in the financial sector. But you might be forgetting to consider insurance companies. Companies like Aflac, Allstate, Metlife, The Travelers Companies, and more make a huge impact on the sector alone.

The financial sector of the S&P 500 isn’t going anywhere for a long time. These are solid, grounded banks and firms with immense financial backing and strength. That won’t always mean you should invest in the financial sector because everyone’s investing situation is different, and timing is everything. Our retirement planning blogs and financial services in Atlanta can help you decide if focusing your investments on the financial sector is the right thing for your retirement and stocks!

Investment advisory services offered through Retirement Wealth Advisors, Inc. (RWA), an SEC Registered Investment Advisor. Hoffman Financial Group and RWA are not affiliated. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

This information is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or promote, market, or recommend any tax plan or arrangement. Please note that Hoffman Financial Group and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.

Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Any references to protection benefits or lifetime income generally refer to fixed insurance products. They do not refer in any way to securities or investment advisory products or services. Fixed insurance and annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Retirement Wealth Advisors, Inc.

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Hoffman Financial Group, Inc. use of the "like" button is not an endorsement of the organization or individual who posted the content. All content, "likes", and followers of this page should not be considered as testimonials or advertisements.

Thank you for visiting Hoffman Financial Group, Inc. social media pages. We are part of a highly regulated industry and therefore have some strict rules on replying to comments. If you do not hear from us, or we remove posts because they do not fall within specific guidelines, please do not take it personally. Hoffman Financial Group, Inc. reserves the right to remove any comments on the page that are exaggerated, misleading, or fraudulent.

No Testimonials – Industry regulations prevent us from posting comments about how well or how poorly anyone feels about working with Hoffman Financial Group, Inc.

Hoffman Financial Group, Inc. use of the "like" button is not an endorsement of the organization or individual who posted the content. All content, "likes", and followers of this page should not be considered as testimonials or advertisements.