Sure, you might have a friend who is still in the market, but for you, it only means you might not receive as much (if any) interest gain this year. See, you have already positioned your retirement accounts in a way that the savings you want to keep safe are no long at the risk of the stock markets – whew!
Many of our retiree clients understand that when they no longer contribute to their retirement accounts, they are no longer buying risk products “on sale.” Market crashes can only hurt someone who is still in this risky position. What’s worse is if the retiree is still at risk when the market crashes and they also require distribution to supplement their income. That’s called a “double whammy!” The problem is further compounded if your risk advisor and/or fund managers are also collecting management and transaction fees whether you gain or lose value in your account.
It is our opinion that being safer with your money in retirement is simply an age-appropriate, common sense approach. Fixed Indexed Annuities and Multi-Year Guarantee Annuities allow for you to be contractually protected against any losses while still earning a fair interest rate along the way. You never have to take income on these products, but if you choose to do that, it is certainly available. These products also generally have no fees and most of our clients never pay a fee, except for certain riders that might be appropriate. 10% penalty-free withdrawals can usually be made annually after the first contract year which gives more than adequate liquidity beyond the normal emergency fund that is required outside of the annuity.
If you have yet to attend our “Confident Financial Future” class or meet for a personal appointment regarding this topic, please ask yourself a few questions:
- Does my current retirement portfolio match my tolerance for risk?
- Am I fully protected against loss if the stock market crashes?
- Does my account growth keep up with inflation?
- Can I safely generate guaranteed income for life without forfeiture upon death?
- Is my retirement distribution based on hypothetical, historical returns or is it guaranteed to last my lifetime?
- Are management fees eroding my growth and costing me in downturns?
We enjoy giving our retiree clients the confidence and peace of mind they desire. Please review our class schedule at https://www.creeksideadvisors.net/seminars/
or call Creekside Insurance Advisors Inc. at (540) 722-2529 or (800) 467-5425. Serving all of VA, WV, MD. Website: https://www.creeksideadvisors.net/
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