REDUCING STOCK MARKET RISK
We had the lost decade from 1998 to 2008 where the S&P generated a -1.40% rate of return while incurring two huge stock market crashes (-46% (2000-2002) and -59% (2007- March 2009)). More recently the stock market has had a very good "bull run" with an average rate of return in excess of 14% from October 2009 to October 2024. What does the future hold? If anyone is being honest, they will tell they really have no idea. Do you know your personal investment risk score (a score on scale of 1-100 indicating your appetite for and capacity to take risk in the stock market)? Are you working with an advisor who uses a personal risk score as a foundation tool to help give you advice?
Would you like to know your personal risk score?
Safe Money Tools
What is a safe money tool? It’s one that provides some amount of upside growth while providing 100% downside protection from stock market downturns. Sound interesting? Let’s look at two such tools.
Retirement Life™
How would you like a wealth-building tool with the following traits?
What’s the catch? There is a cap on the growth each year. For example, if the S&P 500 index generates a return of 15% and if Retirement Life™ has a cap of 13%, the return on cash would be 13% not 15%.
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Tax-free growth
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Tax-free withdrawals (no age 59.5 limit)
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Money can never go backwards due to downturns in the stock market
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Gains are locked in annually
Fixed Indexed Annuities
How would you like a wealth-building tool with the following traits?
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Tax-deferred growth
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Money can never go backwards due to downturns in the stock market
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Gains are locked in annually
What’s the catch? There is a cap on the growth each year (caps right now are in the 7% range).* The tax-deferred rate of return in an FIA should be between 4-6% over time.**
FIAs can also come with a guaranteed income for life rider that will be a good fit for many who are worried about running out of money in retirement.
Fixed Indexed Annuities
How would you like a wealth-building tool with the following traits?
What’s the catch? There is a cap on the growth each year (caps right now are in the 7% range).* The tax-deferred rate of return in an FIA should be between 4-6% over time.**
FIAs can also come with a guaranteed income for life rider that will be a good fit for many who are worried about running out of money in retirement.
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Tax-deferred growth
-
Money can never go backwards due to downturns in the stock market
-
Gains are locked in annually