Diversify. Don’t lock yourself into one strategy during a period of market volatility. Be able to adjust your plan periodically based on the current market conditions. Position yourself as safe as possible during bear markets.
These are all things retirees hear every day. And they’re all great advice. Unfortunately, many aren’t hearing “the rest of the story,” as Paul Harvey used to say.
Enter… The Reallocation Factor.
Here’s the truth. Anyone in retirement or planning for retirement needs to be aware of the power of reallocation in a fixed point-to-point index crediting product. This type of product can tick all the boxes of advice from the “experts” we discussed earlier.
Here’s the “rest of the story.”
In a fixed point-to-point crediting product, your account is 100% safe from any losses regardless of what happens on Wall Street. This takes care of the advice to protect yourself during down markets. This is especially important for those retiring or nearing retirement due to the time they would have to recuperate any losses. Most people don’t realize to recoup a 30% loss takes a 42% gain. And that’s only if you’re not taking withdrawals at the same time!
The rest of our “expert” advice can all be satisfied by reallocation. This means being able to change course when you see a storm coming. It also means not locking yourself into one strategy for an extended period of time. It means you can diversify in different fixed and indexed “buckets” based upon rates and market conditions at specified times (typically annually).
Here’s the bottom line. In most point-to-point fixed indexed annuities, you can change your strategy periodically (typically annually) to match what is going on in the world, what is going on in the markets, and what your needs are at that time.
If you believe the market is in for a downturn, you could choose a fixed growth amount for the next period, knowing you can change that to a market indexed growth amount at your next reallocation point. Or, if you believe the market is doing well and will for the next period, you could allocate your funds to a market index for a much greater chance for growth, knowing you could always go back to the fixed “bucket” next time. Or you could mix the two options and create your own hybrid solution.
The choice is 100% yours with The Reallocation Factor.
And with fixed products, you know that no matter what you choose, there will never be any losses to your principal. Once the gains are credited at the end of every period, they are locked in and can never be lost. And that a majority of these products have no fees at all. NONE!
Following the advice of “experts” can be a great solution once you know “the rest of the story.” Contact your retirement expert today to discuss how The Reallocation Factor could help you weather the coming storms.
The clouds are on the horizon. Are your hands on the wheel?
