In the “game” of retirement the first half is dedicated to accumulating wealth and the second half is dedicated to protecting what you have. In the first half traditional investors accept the risk of stock market volatility with an understanding that market corrections can be overcome with time on their side.
In the second half, or the distribution phase of retirement, there is the need to reduce risk because market corrections may severely alter the amount of income that can safely be withdrawn. Here is an example of two investors who have entirely different outcomes based on the sequence of returns being favorable to one and unfavorable to the other. Click Here to view.
The answer to the removal of this exposure to market volatility lies in a financial vehicle known as a Fixed Indexed Annuity (FIA). FIA’s provide opportunity to grow money without risk of loss. They do not lose money when the market is down and you receive a portion of the gain when the market is up. They also offer predictable lifetime income!
Can we expect the market to continue to rise the next 20-30 years during your retirement without a gut wrenching drawdown? If you are near or in retirement, locking in gains and allowing those gains to accumulate with tax deferral while providing lifetime income will allow you to finish and win the game of retirement. Click Here for 7 reasons to consider FIA’s in 2022. Click Here for educational videos.