The Truth About Fixed Index Annuities in a Bear Market

But what has the market done and what has been the average profitability since the start of the stock market. Well, let’s investigate the truth, we think it will be a true revelation.

We have had a bear market every seven years, except for the current bullish streak. It’s just math folks, your broker or financial advisor may manipulate the numbers, but they will never tell you the real truth because the truth will upset your rice bowl and expose your high commissions and hidden fees.

Let’s look at the S&P in another time frame:

In January 2000, the S&P 500 was at 1,469, in January 2013, the S&P was at 1,469, meaning zero return for 13 years. However, your broker or financial advisor does not tell you anything outside of the market; it always comes back. While history confirms the rise and fall of the market, the question is timing. Will the market go down at a time when you need your funds?

Here is another truth. As of January 2000, the S&P 500 was at 1,496 and in January 2019, the S&P was at 3,110. The fact is that more than 19 years ago and the market yielded 3.9%. However, your broker and your financial genius, across all trading networks, only give you half truths because that’s what you sell.

Suppose you are nearing retirement or are already retired, in case your hard-earned money is exposed to that kind of market risk.

Most people can’t afford to wait for a market reversal, and they can’t afford those losses, and they also don’t have time for the market to come back. It could take 5-7 years to re-match, and that’s only if the market allows you to re-match. Get out of the Wall Street casino, the Wall Street boys are sharks and they will eat you alive.

Let’s look at this myth of average returns and the truth of actual returns. Let’s say that the market, in one year, had a 50% drop and the following year it had a 50% incline. What would you hear from your financial advisor? You would hear, “Friends, we have great news, the market is up 50%!” However, the truth is that in that year, the return was 0%. We should be more practical than gambling at the Wall Street casino because the truth is that playing the market is a legal game.

Going back to the bet, we put in $ 100,000 and the market goes down 50%, now we have $ 50,000. Next year, the profitability of the market will increase by 50%; most people say great, we’ve even been back. The truth is, you sat down at the casino table and won just $ 25,000 on top of your $ 50,000, you have $ 75,000, the fact is, you still have $ 25,000 less. Again, you can’t absorb these losses in retirement, and it’s time to get out of the Wall Street casino.

You say, “Okay, but where can I put my money and keep it safe from market risk, without ever losing my capital and still getting a decent return?” Let’s minimize the damage of the bear market and consider a fixed index annuity.

You ask, “What is a fixed indexed annuity?” A fixed indexed annuity is how to keep your money safe, get consistent growth and guaranteed income that will never survive.

A fixed indexed annuity is a contract between you and an insurance company. The fixed indexed annuity offers you the opportunity for tax-deferred growth based in part on changes in a market index. However, you are not taking risks within the market. The insurance company offers you a return based on an index, protecting the risk. Plus, they offer you the option of turning your annuity into a constant, guaranteed income stream for life, while protecting your hard-earned capital from the uncertainty of market volatility.

Many fixed index annuities have zero fees unless you choose a specific rider that may make sense for your goals. With a fixed indexed annuity, you can never lose your principal. You will see growth as the market increases, depending on the fixed indexed annuity you choose from the insurance company, and if the market goes down, you will never lose a penny. You can only go up or sideways, never go down.