We can all agree that the stock market has been extremely volatile since the COVID-19 pandemic.
But what has the market done, and what was the average return from the beginning of the stock market? Let’s investigate the truth, believe it will be a real eye-opener.
We have had a bear market about every seven years, except for the current run of the bulls. It’s just math, folks; your broker, or financial advisor can manipulate the numbers, but they will never tell you the absolute truth because the truth will upset their rice bowl and expose their high commission and hidden fees.
Let us look at the S&P over another time frame:
In January 2000, the S&P 500 was at 1,469; in January 2013, the S&P was at 1,469, which is a zero return for 13 years. Yet your broker or financial advisor tells you nothing outdoes the market; it always comes back. While history confirms the market’s rise and fall, the question is the timing. Will the market be down at a time you may need your funds?
Here is another truth. Starting in January 2000, the S&P 500 was at 1,496. As of January 2019, the S&P was at 3,110. The fact is that over 19 years and the market returned 3.9%. Yet, your broker and financial genius on all the business networks only give you half-truths because that is what sells.
Suppose you are approaching retirement or are already retired; should your hard-earned money be exposed to that kind of market risk?
Most people do not have the luxury of waiting for a market reversal and cannot afford those losses, nor do they have the time for the market to return. It could take 5-7 years to get you back to even, and that is only if the market will allow you to get back to even. Get out of the Wall Street casino, the Wall Street boys are sharks, and they will eat you alive.
Let us look at this myth of average returns and the truth of actual returns. Let’s say the market, in one year, had a 50% decline, and the following year it had a 50% incline. You would hear, “Folks, we have some great news, the market is up 50%!” yet the truth is the return was 0% in that one year. What would you hear from your financial advisor? We should be more practical than putting a bet down with the Wall Street casino because the truth is that gambling is legalized in the market.
Back to the bet, we put $100,000 down, and the market goes down 50%; we now have $50,000. Next year the market return goes up 50%; most folks say, great, we are back even. The truth is you a sitting at the casino table, and you made only $25,000 on top of your $50,000. You have $75,000. The fact is you are still down $25,000. Again, you cannot absorb these losses in retirement, and it is time to get out of the Wall Street casino.
You say, “Okay, but where can I put my money and have it safe from market risk, never lose my principal and still get a decent return?” Let us minimize the damage of the bear market and consider a Fixed Index Annuity.
You ask, “What is a Fixed Indexed Annuity?” A Fixed Indexed Annuity is how to keep your money safe and get consistent guaranteed growth and income that you will never outlive.
A Fixed Indexed Annuity is a contract between you and an insurance company. The Fixed Indexed Annuity offers you the opportunity for tax-deferred growth based partly on market index changes. However, you are not taking risks within the market. The insurance company provides a return based on an index, sheltering the risk. Additionally, they offer you the option to convert your annuity into a steady, guaranteed lifetime income stream while protecting your hard-earned principal from the uncertainty of market volatility.
Many Fixed Index Annuities have zero fees unless you choose a specific rider that may make sense for your goals. With a Fixed Indexed Annuity, you can never lose your principal. You will see growth with the market increases, based on the Fixed Indexed Annuity you choose from the Insurance Company, and if the market goes down, you never lose a dime. You can only go up or sideways, never down.
We say, “Zero is your hero.”
Now that you know the rest of the story, as Paul Harvey used to say, you would be wise to consider getting off the roller coaster out of the Wall Street casino and take a good look at a Fixed Indexed Annuity.