Let’s talk about a frequent belief that has prevailed in the area of finances: the Either-Or Fallacy. It is the belief that one’s money can either be safe at a low rate of return or at risk in the equities markets to make returns greater than inflation. Fortunately, there are new financial innovations in the marketplace that give way to other potentially appealing options.
The key to creating, long-term, inflation-beating returns is not determined by taking big risks or by accepting a low rate, but by achieving the elimination of potential losses while not giving up the potential for gain. Because when your portfolio experiences losses, the growth years may simply get you back to where you were, not forward. Two steps forward, three steps back is no fun when it comes to your money especially when your golden years depend upon it.
I believe firmly that protecting your downside, avoiding losses in negative market years is the key to long-term success. Fortunately, in today’s marketplace, this is easily achievable without having to give up positive returns in the years the market has positive gains.
Fixed index annuities and index universal life products offer upside potential with downside protection. There are a wide variety of options available with these financial products which cater to specific needs and goals.
Schedule a free consultation to learn more about what options may be available to you.