The recent significant declines in the stock market, volatility of the portfolio, and large-scale institutional failures of many investors asking, once again, about the safety of the annuity accounts. Consumers ask, "Are annuities safe from a recession? Do they maintain value when the market low, and if they are insured? Are they going to lock in my gains each year? "The answer is, YES. Investing in a fixed, immediate, or an incomes policy indexed annuities protect the principal and interest of market losses.
Must wait for further correction?
Unfortunately, many investors are suffering through similar pains to those experienced during the market downturn from 1999 to 2003. Most (not all) brokerage accounts recovered their losses from that time period, but the most recent recession after 2007 has quickly without making any progress. It's business as usual brokers, however. Simply tell customers to wait. However, these same brokerage houses are busy selling actions, trying to lock in profits, while their individual clients absorb the losses. And, of course, many investment and retail banks have had to declare bankruptcy because of losses in its insurance portfolios of highly leveraged.
What does history tell us?
For many years the brokerage industry has avoided safety of fixed income accounts, whereas the individual investor portfolios decline. If we look at a historical graph of the S & P 500 (an important stock market barometer) it peaked in March 2000 with about 1,500. In October 2007, the S & P 500 seems to have peaked again in about 1500. Copies of all the potential benefits of dividends, ie a fixed rate of over 7 ½ years! The present value of S & P 500 (1300 to March 2008) shows a loss of almost 12%. The council outdated and maintenance purchase does not seem to be working. To create wealth, investment portfolios necessary to make a profit, from time to time. An indexed annuity will lock in profits each year and protect the principal and interest earned on the account.
The question arises, why mom and pop investors participate in this turmoil again? Do they experience a higher standard of living when the market increases? Usually no, but I certainly feel the financial pain when the market contracts by ten or twenty percent. Maybe younger investors can weather this storm again but there are those who can not afford to experience significant losses. Many major investors are in retirement and have their savings to produce regular income. Or maybe you are near retirement and trying to decide how best to protect their IRAs, 401 (k) or 403 (b) future income accounts.
It is a response of the annuity?
Annuity accounts are very beneficial for investors who need a reliable growth, guaranteed income, and protection of their principal. Maybe the brokerage industry is winning the battle in the media, but annuity investors have won the battle for the preservation assets over the past ten years. Investors have protected their principal and interest returns while experiencing above average in their investment dollars for some time with safe, annuity accounts insured.
You might ask, "Have I not investigated annuity accounts because of what I know, or what I think I know. "If you're not sure, that learning can be worth more. A fixed, indexed, or immediate annuity account can be a valuable alternative to a volatile brokerage account.
Annuities and Retirement Accounts
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