This week’s article made me think about the old adage “What goes up must come down.” Getting older always seems to involve a race against time, and if you know that you have to live off of your savings in retirement, what do you do if there if there is a decrease in your nest egg when you have run out of time to try to make any losses back? Go back to work? Spend even less than you are now? When things are good it is human nature not to remember the risks, even though they are still there, just not actualized. “Fixed indexed annuities are one of several tools that you can use to limit downside risk. You may want to reassess your strategy to see if you can implement these tools. Investing in retirement or even in the years just before retiring always presents a difficult challenge. On one hand, you need to continue growing your assets so you can fund your lifestyle and fight inflation. On the other hand, you want to avoid significant declines because you may not have time for your investments to rebound. One way to protect against this risk is to use tools that offer upside potential but limit downside risk exposure. For example, fixed indexed annuities give you the ability to earn returns based on market performance without experiencing downside market loss. In a fixed indexed annuity, you earn interest every year. The interest rate is based on the performance of an underlying index, like the S&P 500. If the index performs well, your rate may be higher. If it performs poorly, your rate may be lower. However, these policies always have a guaranteed minimum rate, so you will never lose money even if the index declines in value.” Call us if you want to talk about options that limit your risk exposure. We’re always here to help.
CAN AN UP MARKET SINK YOUR RETIREMENT?
*DISCLAIMER: This Newsletter is for informational purposes only and does not constitute a complete description of our services or performance. This Newsletter is in no way a solicitation or offer to sell securities or investment advisory services except, where applicable, in states where we are registered or where an exemption or exclusion from such registration exists. Information throughout this site, whether charts, articles or any other statement or statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Nothing in this Newsletter should be interpreted to state or imply that past results are an indication of future performance. THERE ARE NO WARRANTIES, EXPRESS OR IMPLIES, AS TO ACCURACY, COMPLETENESS OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY LINKED WEBSITE. All logos and trademarks are the property of the respective trademark owners. Use of third-party trademarks shall not be construed as affiliation, endorsement or joint venture. ® and TM denote registered trademarks in the United States and other Countries.
This commentary was created by a third-party for the Agent’s use. NTM 08-27.