Tired of Stock Market Volatility?

Did you have any money invested in the stock market in 2008?  Whether through your 401(k), mutual funds, bonds, stocks, etc.?  If you did you probably saw the value of your investment or portfolio decrease by as much as 30-50% in a matter of 6-12 months.  For many people that meant delaying retirement 5-10 years in order to recover from a drop like that.  For others it is sick, sick feelings to see 40% of their money evaporate almost overnight. 

Why do people invest in the stock market anyway?  To get above average rates of return?  Let’s examine this.  Depending upon who you listen to the stock market averages 7%-10% per year.  Let’s examine this concept for a little bit.  Over the last 10 years the Dow Jones Industrial Average is down 24%.   In fact what makes up most of the stock market returns is the time period between 1970 and 2000 when the stock market almost never went down.  Since 2000 the stock market has been one wild ride.  Many people would be shocked to find out how little they actually need to invest in the “Market” to accomplish their goals. 

What are the alternatives to the stock market?  Fixed Annuities and Equity Indexed Annuities.

 One of the options can be a Fixed Annuity from one of our highly rated companies.  A fixed annuity provides a simple guaranteed interest rate for a set period of time. Typically these rates are higher that that of CD’s offered by banks and credit unions.  You can generally get a rate of 5-8% guaranteed rate with ZERO risk whatsoever.  In addition you generally have the ability to withdrawal certain amounts per year generally 10% of the contract value in any given year.  To learn more about Fixed Annuities click here.

Your other option is an Equity Indexed Annuity from one of our highly rated companies.  An Equity-Indexed Annuity is a mix between a fixed annuity and investing directly in the stock market.  Lets do an example.  Let’s say you are trying to figure out whether to invest in a diversified portfolio of mutual funds (stock market) or in an Equity Indexed Annuity from Annuity Rate Shopper.  The mutual funds offer you the greatest possibility for growth, while the Fixed Annuity although limits your growth but offers you the most safety with a guaranteed interest rate.  An Equity Index annuity allows you to choose how long of a contract you want (3,5,7 or 10 years).  As long as you leave your money in the contract for that time period you will receive the greater of 3% per year or the stock market return whichever is greater.  The 3% may be less than a traditional fixed annuity but you have the ability to participate in the upside of the market. 

Whatever your reason for looking at alternatives to mutual funds and stocks here at Annuity Rate Shopper we have tools and expertise to help you choose the correct investment.