The Importance of Stability in Unstable Conditions
Market declines have wide-ranging effects. Those nearing or entering retirement are often the most vulnerable to its volatility. From October 2007 to March 2009, the S&P 500® plummeted nearly 57 percent and it took more than five years for the index to recover.¹ For pre-retirees, with more than 20 years tenure, the average 401(k) loss was 25 percent.²
There’s no timing the market. But, it may be the right time to consider options for clients nearing retirement who can win by not losing, and secure their assets.
Client Resources for Volatile Times:
If your client is concerned about outliving their retirement funds, options not directly tied to the market but provide lifetime income might be a smart option.
Do your clients have time to recover from market downturns? See how a fixed index annuity can protect both your clients’ time and money.
If clients would have purchased a fixed index annuity prior to recent economic crises, they would been shielded from loss.
Know Your Client’s Fixed Index Annuity Income and Accumulation Options
¹ Investopedia. Probasco, Jim, “10 Years Later: how the Financial Crisis Affected Seniors.” 2018.
² U.S. News & World Report. Brand, Emily and Marquardt “How did your 401(k) really stuck up in 2008.” 2008 (Compliance: most recent source, as this was the year after the loss).
The “S&P 500®” is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by American Equity Investment Life Insurance Company (“AEL”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed to SPDJI and sublicensed for certain purposes by AEL. AEL’s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and such parties make no representations regarding the advisability of investing in such product(s) and have no liability for any errors, omissions, or interruptions of the S&P. Dividends paid on the stocks that comprise the index are not credited directly to contract values.
Possible interest credits for money allocated to an index-linked crediting strategy are based upon performance of the specific index; however, fixed index annuities are not an investment, but an insurance product, and do not directly invest in the stock market or the index itself.
Guarantees are based on the financial strength and claims paying ability of American Equity and are not guaranteed by any bank or insured by the FDIC.
Questions or Concerns?
Reach out to a Pinnacle Representative today.