Safe Investments in Volatile Markets
Recent significant stock market declines and portfolio volatility have many investors inquiring, once again, about the safety of annuity accounts. Consumers ask, “Are annuities safe from a recession? Do they maintain value when the market goes down? Will they lock in my interest gains each year?” The answer is, yes. Investing in a fixed, an immediate, or an indexed annuity policy will protect your investment principal and gains from market losses.
Should You Wait Out Another Correction?
Unfortunately, many investors are suffering through similar pains to those experienced during the market slide from 1999 to 2003. Most (not all) brokerage accounts regained their losses from that period of time, but this recent downturn has quickly undone that progress.
It’s business as usual from the brokers – telling clients to wait it out. Yet, these same brokerage houses are busy selling stocks, trying to lock in profits while their individual clients absorb the losses. For many years the brokerage industry has shunned the safety of fixed annuity accounts while investor portfolios decline.
It begs the question, why should mom and pop investors participate in this turmoil again? Do they experience a higher standard of living when the market increases? Usually not, but they certainly feel the financial pain when the market contracts by ten or twenty percent.
Maybe younger investors can weather this storm, but there are those who cannot afford to experience these kinds of losses. Many senior investors are in retirement and counting on their nest egg to produce regular income. Or maybe they are near retirement and trying to decide how to best protect their IRA, 401(k) or 403(b) accounts for future income.
Is a Safe and Insured Annuity the Answer?
Annuity accounts are very beneficial for investors who need reliable growth, guaranteed income, and protection of their principal. Maybe the brokerage industry is winning the battle in the media, but annuity investors have been winning battle of asset preservation for the last ten years. Annuity owners have been protecting their principal and earned interest while experiencing above average returns on their investment.
You might ask yourself, “Have I not investigated annuity accounts because of what I know, or what I think I know?” If you are not sure, it may be worth learning more. A fixed or indexed annuity account can be a valuable alternative to a volatile brokerage account
Contact us today to discuss the safe, reliable and insured fixed rates and returns with fixed and indexed annuity accounts.
Last updated on July 21st, 2016