Is a Charitable Remainder Trust Right For You?

Annuity Value Solution – Never Lose Money Again

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In the recent volatile market your annuity value could be down even though the market might be doing better. You could be back to even over the last few years or you could be finally making money again. What if there was a better way? What if there was a way to never lose money again with your investments? What if instead of recovering over the last couple of years you were making money as the market came up? How much further along would you be now? How would it feel to be able to tell your spouse that they never have to worry about the market again?

If your variable annuity value is down there is hope but action needs to be taken. It is invested in market investments. They go up and down with the market or even worse they stay flat with the market as well. Some of the mangers of the investments do perform much better than the general market but they are still at the mercy of the economic conditions that produce a positive market environment. If the market is down your annuity value suffers and as your annuity value suffers so does your income and financial stability. There is a better way.

A different kind of investment can be the solution to your annuity value problem. The indexed annuity secures your annuity value so that you never lose money again. It doesn’t go down with market but it will go up with market. Imagine that! The market goes down and you do not lose money but the market goes up again and you make money. Your annuity value can increase but it never decreases unless you take money out of course.


Your annuity value is then safe and secure. You then have the knowledge that you will never lose money again. There are some issues with every annuity that need to be addressed before you invest. Your annuity value will never go down but there are some limitations as to how you take money out just like your old variable annuity. Usually, you can take 10% out per year with no issues. If you had $350,000 to invest then that is $35,000 out per year with no problems. Good retirement planning only allows 4-6% of your value to be withdrawn each year in order to have enough money to reinvest for income increases each year. So 10% is more than you will need. If you are not taking income then there is no problem at all.

Will this idea work for other mutual fund and stock investments? Yes! You don’t want to put all of your money into one kind of investment. Your indexed annuity value will never go down but your stocks and mutual funds might. For advanced income planning, I use a concept called annuity laddering to guarantee your income needs no matter what the market does for your entire life. The money that is leftover can then be put at risk in the market will no real risk to your lifestyle or financial stability. This way not are is your annuity value safe and secure but your lifestyle is also safe and secure.

Be sure to seek competent advice from financial professionals before making any changes to your investments. Also, be sure to understand all the contract details of your new investment before investing or sending money or transfer paperwork. Remember that your broker that sold you the original investment may be an expert in variable annuities but may not have much experience with indexed or other fixed annuities. Make sure they are competent before accepting any type of advice from any financial professional. Your annuity value does not have to go down. There is a better way!



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