Protect and Grow Your Money During a Bear Market

​One instrument that can benefit retirement savers in a bear market is a “Fixed Indexed Annuity”. Not only do they offer principal protection and do well in down-market periods. Another nice feature of fixed index annuities is their growth potential. Your money can earn more interest than just the fixed interest rate you would receive with a traditional fixed annuity or CD.

An Indexed Annuity can be linked to an underlying financial benchmark, like the S&P 500 price index. Some companies recently have added another index for their customers called the Credit Suisse Index. Which is a conservative index based off of bonds and gold and other indices that do well during volatile times like we are in now. 

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​Here’s how it works…When the index goes up your plan earns interest based on a portion of that growth of the index you are in. Here’s the best part…. When that index goes down and has a bad year, you will never lose any of your principle or previously credited interest. The insurance company simply credits zero to your account for that year and you lose nothing. Even if a market index had a -50% change, your money would still be intact. Your principal and any earned-interest money from previous years remain the same in the down-index periods! The worst you can do Zero and remember, during a bad year “Zero will always be Your Hero”! 

Plus, some of these plans are now offering a “Guaranteed Income Rider” which will guarantee when you start receiving regular payments you will receive these payments the rest of your life! If you are wanting to protect your hard earned retirement dollars in a “Volatile or Bear Market” then an Indexed Annuity should be the plan for you! 

​*Remember the older you are the harder it is to recover from any loss in the stock market.*