Here’s the miracle insurance policy to protect your finances no matter what – St George News


Stock image | Photo by tiero/iStock/Getty Images Plus, St. George News

CHARACTERISTIC – Let me ask this question: do you insure your home, your cars, your valuables?

Stock Photo | Photo by Velishchuk/iStock/Getty Images Plus, St. George News

Of course you do. Why? You pass that obligation on to a risk carrier, an insurance company, because you don’t want to be exposed to risk or loss. It’s human nature to want to protect our property if something devastating happens.

Now let me ask an essential follow-up question: are you insuring your investments? Your retirement accounts? The sad reality is that many people don’t take the same precautions with their essential money.

If your investments are in risky assets such as stocks, bonds, mutual funds and variable annuities, you may be exposing those investments to market risk. I’m sure we all remember those dark days of 2008. Do you remember how many people saw their investment accounts cut in half or more with the financial crisis of 2009?

As a result, many of those same people who were ready to retire had to continue working for many more years. Imagine if they would have taken the time to take out an insurance policy on their investments in 2007. Do you think they would have been quite happy with that at the end of 2008?

Stock image | Photo by Motortion/iStock/Getty Images Plus, St. George News

Why do you think insurance companies have become such a broad category in our country? This is because they play a crucial role; they carry risks for almost all aspects of our lives: fire, theft, civil liability. Did you know that there are equally important companies that specialize in insuring your retirement nest egg? They work the same way – focusing only on protecting your money from market losses. They are called annuity companies.

Let’s take an example. If you had $250,000 in an IRA and placed investment insurance in it in 2007, at the end of 2008 you would still have $250,000 in your IRA. You wouldn’t have lost a penny! Many investors who were in the market lost more than 50% at the end of 2008 and 2009.

It got even better when the markets decided to stage a long rally in 2010. The money you had in that IRA would have benefited from the upward contractual growth returns. Your earnings from 2010 to 2019 would be locked in due to your foresight to secure your vital retirement funds. We call this “annual reset”.

File photo by Unsplash, St. George News

Each year when the market turns positive, your account receives the contractual gain, and it is locked in, and the growth is added to your guaranteed principal for the following year.

For example, if you have $100,000 in your account and your first year share of market returns is 5%, your account is now worth $105,000. Let’s say the second year the market drops 20% – bad news, right? Not for you. Your insured account is still worth $105,000. In the third year, your contract market gains another 5%. Now you get 5% more on the $105,000, and that gain is locked in for the next year.

What is this miracle insurance policy? It’s called a fixed interest annuity, and it’s quickly becoming the most important product in the United States. Your funds can only increase. And they are never subject to market risk.

Think of a fixed indexed annuity as sleep insurance – you’ll sleep better at night!

Copyright © Lyle Boss, all rights reserved.

Source link

Justin D. O'Neill