If you are within five years of retirement (before or after), you're especially vulnerable to a downturn. A recent RetireOne study showed what happens to someone who retires with $100,000 in a down market, compared to someone who retires with the same amount in an up market. Both hypothetical investors earned an annual average return of 4%, with the same withdrawals taken at the same time.
The difference? After 15 years, the down-market retiree has $35,889, while the up-market retiree has $105,944. Yeah, the market cycle makes that big a difference.
Annuities make it possible to insure your income stream against the effects of a down market. With an annuity providing guaranteed income, you don't have to draw down principal as rapidly during subpar market conditions.
Annuities are not investments. They are a savings vehicle meant to help pre-retirees and retirees protect against the risk of outliving their assets.
Annuity purchasers are people looking for peace of mind. They want to participate in gain without losing big.
At JenniferLangFinancialServices.com we specialize in life insurance and annuities. Contact us today and we will help design a guaranteed income strategy that gives you protection and peace of mind. Lock in your gains. Get an annuity quote today.