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Guard Against Market Volatility with Annuities

With the election happening this week, are you worried about how the final decision on the next President of the United States may affect the stock market? In 2020, your retirement savings could have been impacted by many different factors led specifically by COVID-19’s negative effects on our economy.

You have worked many years to save for your retirement, but could the first bear market since 2009 eliminate all of that hard work to save your precious retirement fund? Is there anything you can do to protect those dollars from losing their value in the stock market?

The pandemic has woken up a lot of retirees, consumers planning for retirement, and even the Millennials who aren’t really thinking about 20 or 30 years down the road. The coronavirus has everyone searching for answers – and distracted by its impact – to really think about saving for retirement.

Taking the Steps to Protect Your Retirement

If you have a 401(k), that retirement savings account is affected by market downturns. You win and you lose based on its fluctuation. Some consumers place all of their savings into a 401(k) or other retirement account in hopes that the money will last 10, 20 or even 30+ years!

Annuity Alliance encourages consumers to think about a more balanced approach to retirement without putting all of your nest eggs into one basket. By diversifying your portfolio, you can place money into products with a safer “floor” that you cannot outlive those dollars.

Fixed Indexed Annuites (FIA) have gained momentum as a retirement savings product that guarantees lifetime income for consumers. You will never outlive your payments in a FIA as an annuity is designed to protect you from market losses during fluctuating conditions in the stock market.

Each carrier has different products designed to fit around your retirement strategy. By talking to a financial professional, they can review your current situation and suggest multiple options from top-rated insurance carriers. A financial professional also can show you an illustration so you can see how an annuity will pay out during your retirement years and take into consideration factors such as bear markets and inflation.

Remember, a fixed indexed annuity also protects your principal amount, and any growth is tax-deferred during the annuity contract. You also have to consider any withdrawals or surrender charges if you terminate the contract early. However, any gains you make are added to your principal on an annual basis.

If you would like Annuity Alliance to connect you with a licensed professional, please contact us through our Contact Form. A licensed agent will contact you and discuss your annuity options.