If you could never lose your money would your life be enhanced? It is a simple question but a very difficult question to answer. Would your life be enhanced?
Investing money is based on knowledge, planning, time horizons and risk tolerance. As we age the removal of market volatility gains stature for most people. Many investments allow for the lack of risk, banks which are FDIC insured are an example.
By selecting the very safest of options, the possibility of again also is reduced. What happens if growth is as important as important safety? What if an increased return is essential to retirement planning? If this explains your situation then consider a different option for your retirement dollars.
A Fixed Indexed Annuity (FIA) can provide total safety as well as the possibility of a greater gain in your account. FIAs provide just that, safety and freedom of risk with a guarantee that the worst that can happen is ZERO. On the positive side, if your selected EIA gains in value, that value becomes the new guaranteed minimum amount.
No one can lose with an FIA and they do provide the possibility of gain tied to an indicator based on the American Economy. While numerous choices are generally available in FIAs for calculating the crediting rate, most people select the Standard and Poor’s Stock Index also known as the S/P 500. For over 70 years the S/P 500 has been a reliable indicator of what the American Economy returns as a gross value and as a gross economic value
Consider an FIA as a choice for your funds that are too valuable to risk and allow the growth to be tied to an outside source.
Like all decisions, considering an annuity means a long term commitment. Always consult an expert regarding taxes and legal matters.