“The US is facing a dollar collapse by the end of 2021 and an over 50% chance of a double-dip recession.” – Economist, Stephen Roach (Business Insider)
The economy of our nation is a living creature, unique, and constantly changing. There have always been economic booms, collapses, and crisis. It’s not a matter of if, but when. No one can afford another 2008 financial crisis! Not when 7 out of 10 in this country are living paycheck to paycheck. But it will happen again. So what can you do to secure your future, protect your investment, and stop losing money every time the economy flips?
Traditional Retirement Planning:
Now, if you’re smart, you’ve got a retirement account. Somewhere down the road you decided it was a good idea to plan for a rainy day. Or perhaps working until your mid 90s isn’t that appealing to you? It doesn’t sound very good to us either! There are many ways to save money, you might have it stashed in a bank account, a mattress, safe, or buried in the ground. No judgement! Or perhaps you’ve got something more sophisticated, like a CD, 401k, or an IRA? Let’s examine each method briefly, and how they work both for, and against you.
Cash on hand: Zero protection from loss, 100% available to spend, zero growth.
Bank Account or CD: Great protection from loss, but almost no long term growth.
401ks and IRAs: Maximum potential for growth, zero protection from loss.
So now we’ve identified both the pros, and the cons of each type of savings plan. But what if there was a better way? Something more financially sound than the bank, with the ability to grow like a 401k, but with 100% protection from loss! Sounds too good to be true, right? Well, allow us to introduce you to the Fixed-Indexed Annuity, and why it’s a game changer for your savings, your security, and your future!
But wait. If I want growth why not stay with my 401k or IRA?
You absolutely can! But lets talk about the Great Depression. Could you survive that financially? How about the double-digit inflation of the 1970s? The 1989 Savings and Loan Crisis? How about the post 9/11 recession? The 2008 recession? And let’s not even talk about the post-pandemic 2020 economy! Theoretically anyone could, as long as you have decades to wait so your investments can recover. That’s the problem, time is not on our side. Let’s examine some data from the S&P 500 Index, arguably the industry standard for stability.
S&P 500 Gain and Loss Ratios:
S&P 500 Real Earnings Growth from 1990 to 2020:
You see, the problem is, your retirement income is your security blanket. It’s how you’re planning to survive the most precious years of your life. Did you know, the average retired American needs in excess of $50,000 per year to maintain their current lifestyle? That’s no small amount of money. So yes, you can invest by traditional means. It’s not the good years anyone worries about, it’s the bad ones.
With a Fixed-Indexed Annuity your money will continue to grow similar to a market index like the S&P 500. However, when the economy goes south, your money will stay put. You’ll never again lose those precious dollars you’ve worked your entire life for. And you can let it grow as long as you’d like! So stop biting your nails every time the economy flops. Give us a call today, and let’s get you the Security, Protection, and Growth you deserve!
Don’t lose another penny to an ever changing economy.