With the recent increase in Coronavirus fears, more and more investors are literally taking their money and running, fearful of the impact this illness can inflict, both physically and financially. But by implementing just one simple strategy, you can survive this market crash, and maintain confidence that your retirement income will still come in as anticipated.
So, if you’ve been checking your investment balances lately – and afterward wishing that you hadn’t – you’ll want to read the rest of this post carefully because it could provide you with what you need to know to get out of the volatile market, but without having to subject yourself to the painfully low rates that “safer” financial alternatives are offering.
The Biggest Mistakes Retirees Make with Their Investments
Most of us have been told for years that the “best” way to plan for retirement is to invest money in the stock market and then “wait it out.” But what exactly are we waiting for?
Unfortunately, you can’t time the market. Worse yet, if you’re just inches away from retirement, you also don’t have time to “wait it out” and hope that your portfolio comes back to even.
As the old saying goes, “Hope is not a strategy.” Plus, there’s absolutely no guarantee that your savings will ever retain their pre-loss value. (Just ask anyone who sustained massive losses in 2008).
So quite frankly, the buy and hold advice is actually one of the biggest mistakes you can make with your money.
But what can you do?
One option is to consider a fixed index annuity. These financial vehicles allow you to participate in the gains of an underlying market index – such as the S&P 500 – but avoid losses if the index performs poorly during a given time period.
True to their annuity form, fixed index annuities can also provide you with a lifetime income stream that can be counted on for the remainder of your lifetime – regardless of how long that turns out to be.
Factors to Consider Before Making Any Changes to Your Portfolio
Just like with most other types of products and services, there is no single fixed index annuity strategy that will work well for everyone. That’s why you need to first ask yourself some key questions prior to moving forward.
For instance, does your current retirement strategy allow for “corrections” in the market? If not, then a fixed index annuity could be a good alternative. It is also important to determine whether or not you will incur any fees or penalties for moving your money out of its current position.
Even more important than these questions is asking yourself whether or not you actually have a retirement income PLAN, or instead just a “basket” of unrelated financial products. If your situation fits the latter, then it could be time to consider a fixed index annuity.
How to Make Sure You’ve Covered All the Bases
Annuities can have a lot of moving parts, so it is critical that you understand exactly how an annuity will work and what you can anticipate before you make a long-term commitment to one.
That’s where Annuity Gator comes in.
Annuity Gator provides in-depth education to consumers about “all things annuity” – including the good, the bad, and yes, even the ugly. That’s because we feel that the best financial decisions are made when you have all of the story, rather than just part of it.
We take a much more objective approach about annuity education than the brokers who are just trying to sell you something, and we can help you to create the ideal retirement income plan, regardless of whether you’re trying to fill in an income “gap,” or looking for a way to generate a substantial component of your future incoming cash flow in retirement.
If you’re ready to stop pinning the success of your retirement income plan on the volatile and unpredictable stock market, give us a call and let’s talk. We can be reached directly at (888) 440-2468, or you can send us an email via our secure online contact form here and schedule a time to chat with one of our Annuity Gator research specialists.