Stock market losses can devastate a portfolio and your chance for long-term success, but today we’re going to talk about something that could be even more devastating than a stock market loss. You probably think, “What could that be?” because stock market losses can ruin your retirement. The answer is … high fees!
If you’re retired or near retirement, we can help reduce your fears about your money and retirement.
We can create a written retirement income plan for you that will serve as a roadmap, like navigation in your car, to make sure you don’t get lost during retirement.
We can help eliminate your fear of running out of money by helping you create dependable income guaranteed for life.
We can help you protect and grow your assets without taking excessive risks, by using multiple, conservative asset strategies, making sure you don’t lose what you’ve worked so hard for.
If you’re a retiree who worries a lot about your money, implementing a Roadmap to Retirement might be just what you need. Having a financial plan, in writing, works like the GPS navigation in your car, making sure you get where you want to go and don’t get lost in retirement.
A written retirement income plan will show you how much income you’ll receive from each source each year, what’s guaranteed and what’s not guaranteed. It will show you the amount of risk in your portfolio and the fees you’re currently paying and then the reduced risk and lower fees you’ll pay going forward.
People will tell you myths about fixed index annuities with income riders because they don’t really understand how they work, or because they want to sell you something else.
Myth #11 – Your income will never increase. NOT TRUE. Some plans offer guaranteed lifetime income with the potential for annual increases that get locked in for life.
Myth #12- Other traditional Wall Street type assets will guarantee your principal against losses, provide guaranteed lifetime income, and provide the opportunity for growth. NOT TRUE. Fixed index annuities with income riders, provide these benefits, stocks, bonds and mutual funds don’t.
Myth #13- Annuity companies aren’t safe, they fail all the time and people lose their money. NOT TRUE. No one has ever lost any of their guaranteed principal from an insurance company failing.
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People will tell you myths about fixed index annuities with income riders because they don’t really understand how they work, or because they want to sell you something else. We recently provided the first 5 myths about fixed index annuities, here are some more:
Myth #6- You can’t get any growth. NOT TRUE. When your index goes up you have the opportunity to earn competitive returns for a low-risk asset, and when your index goes down you lose NOTHING.
Myth #7- You can lose principal in a stock market crash. NOT TRUE. Your principal and past earnings are 100 percent protected from all stock market losses. If the market crashes 50 percent, you lose 0 percent.
People will tell you myths about fixed index annuities with income riders, either because they don’t really understand how they work, or they want to sell you something else.
Myth #1-You will pay very high fees. NOT TRUE. The total average annual cost for a fixed index annuity with an income rider is 1.0 percent, in writing, fully disclosed.
Myth #2-There’s a big commission that comes from your money to pay the agent. NOT TRUE. No commissions are deducted from your money- the annuity company pays the agent, you don’t.
Myth #3 – You can’t access your money for a long time. NOT TRUE. In some plans, you can access income immediately, and in most plans, you can access funds after 12 months.
If you’re like most people, you don’t understand your portfolio and each of the individual mutual funds you own. A fund analysis can help.
A fund analysis, basically an audit, will determine if you have too many funds and reveal important information about each one. It will show you the actual, direct expenses of each fund, as well as the hidden costs you never see. You’ll know how much risk you have in each fund, as well as how much each fund has lost in the past.
How familiar are you with Wall Street Math? The stock market lost -50 percent during the 2000-2002 Technology Bubble and lost -50 percent again during the 2007-2009 Financial Crisis, crushing American portfolios and dreams.
In 2008, the US economy lost an estimated 22 Trillion dollars! You lost so much because you didn’t know how much risk you were taking and don’t understand Wall Street Math.
Wouldn’t you love to make money when the stock market goes up but never lose anything when the stock market goes down? You can!
A fixed index annuity bases your annual gains on a portion of an index you choose, such as the S&P 500 Index, without suffering any losses in the years your index goes down. If the stock market crashes you get zero percent, so you’re completely protected against market losses.
We are facing something we have never faced before in our lifetimes. That is a fact and, in time, when the news of the pandemic spreading and the recommendations on social distancing getting broader by the day, it can be hard to feel certain or safe about anything.
Although Peak Financial clients have benefitted tremendously from the risk and volatility reduction strategies used to manage their assets, it is still very troubling to watch the unprecedented market decline and hard to tune out the constant media noise regarding losses. But most importantly, we need to maintain our health and the health and safety of our family, friends, and neighbors. Covid-19 which emerged late in 2019 in China has spread rapidly worldwide since then and is a global pandemic. The measures taken by leaders around the globe have for the most part been strong, leaving most children without a classroom to go to, parents working from home or without a job altogether, and investors uncertainty causing panic about what is to come.
