Is the Financial Crisis and Market Volatility Affecting Your Sleep?
Financial volatility and the ongoing crisis
Have most Americans been exposed to the stock markets volatility? It has caused many people to reconsider timelines for retirement and other lifetime funding option. If your 401 (k) or other retirement investments have been reduced in value or exposed to relentless volatility, what options do you have? How do you protect your retirement funds?
Your options may be based on timelines, when is the retirement money going to be used?
That may seem like a simple answer to a complex problem but not really. Not really, I say because the timetable needed for any amount of money will dictate available options. If your timeline for retirement is about 10 years, then a whole category of safe money exists for you. This safe money will never be exposed to market risk and is guaranteed. Your stockbroker will almost never tell you about it because it could mean you no longer use their services and products.
What is this product?
How can a product guarantee to never lose value? How can any product guarantee to never to be exposed to market risk? Why haven’t I been told about this product?
The products I am speaking about are annuities, not variable annuities sold by the investment sector but Fixed Indexed Annuities (FIA) sold as an insurance product.
An annuity can earn and credit interest to your retirement account annually, these are boring products that make certain you are never exposed to loss and market risk. Does this sound too good to be true? These products contain numerous benefits that allow for market exposure over your funds while at the same time ensuring your retirement future. Income options with guarantees in writing.
Available options for interest rates
Many options are available for selecting the interest rate and the best strategy for you and your timeline. Even the possibility of tying the amount of interest earned to an outside source such as the stock market, but without actually being in the market! The advantage to you is that you will make more money when the stock market goes up, if it goes down you will be guaranteed no market exposure. You’ll never lose your investment. You will always be protected from market swings and market risk.
Contractual benefits
In addition to protecting and guarantees against market risk, there are also numerous contractual options available to you
These options include:
Tax-deferred growth: You are not exposed to tax liability unless you touch the money, your money will continue to grow.
Guaranteed income: Many opportunities exist for designing a retirement plan so the plan will help cover your expenses and needs for as long as you live or for any period desired. The insurance company shoulders all responsibility for money management and retirement income.
Probate avoidance: Your account will avoid probate expenses and delays as long as a beneficiary is selected. Funds are normally delivered immediately without delay of expenses to a named beneficiary.
If your need for retirement is ten years or less consider a portion of your retirement funding to be allocated to annuities, They are safe and secure and are free from market risk
