Recently we learned a valuable lesson about stock market returns: what goes up can come down. The financial collapse of 2008 spread through the economy like wildfire. The government’s response has been credited for keeping us out of another Great Depression, but may set up a perfect scenario for inflation.
How can you keep up without taking on risk? Risk is what got us all into this hole in the first place - and for you, it’s personal. You have to plan for retirement, now.
What can a retiree or a soon-to-be-retired person do, to make sure he does not outlive his money?
In normal times, gold and other metals are a hedge against inflation; precious metals usually are sold at a higher price once the currency is inflated - that is, in the absence of a “bubble.” Many analysts talk about a “gold bubble” now, and bubbles burst.
If you’re optimistic about the stock market continuing its rebound, you can “double down,” and hope that market returns outpace inflation.
But how certain are you of that, and for how long? If you are seventy and planning for twenty years of retirement, are you certain that equities will provide you the income you need? If you are 55 and are planning for 35 years’ retirement income, are you certain that 2008 won’t be repeated?
An annuity insulates you against market and inflation risk. An immediate annuity provides a guaranteed payout for the rest of your life, assuming a rate of return above normal inflation. You always earn that rate.
Additionally, your annuity can be indexed to the stock market. But unlike a direct investment in the market, your indexed annuity base payment never decreases. In good years, however, you earn returns indexed to the market, within a limit usually ranging from 8-10%.
With annuities, you are “betting on your own life.” If you “should” need 20 years of income and you stop needing that income in 10 years, you lose; but one’s own personal demise has a way of putting such a loss in perspective. By contrast, if you live 30 years, you win - collecting the same guaranteed lifetime income for much longer. You shift the risk that matters to an insurance company.
To find the annuity product that works best for you, visit annuityrateshopper.com, or call us at 888-515-7152.
Don’t “bet your life.” Bet on it.
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You made some Good points there. I did a search on the topic and found most people will agree.
oh i love to invest on the stock market but it is really risky these days,’.
i would love to invest in stock market if i had only the money that i need to buy stocks::.