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Indexed Annuities vs Mutual Funds

Is your retirement savings insured?  If you have savings in an old 401K or IRA from a previous employer then the answer is probably NO.  As a matter of fact, your savings may be significantly at risk to the next market crash...similar to the 30% market decline in 2008.  And, history tells us that it’s not a matter of “if” but a matter of “when” the next double digit decline occurs.  And yes, in time (generally 5 years or more) the market will recover all of its losses.  However, while we wait for the next market downturn, two very important questions need to be answered, “How much of your retirement savings can you afford to lose and how long can you afford to wait to get it all back?”

 

As an alternative, what if you could lock in your current gains, continue to grow your savings and have a contractual guarantee (from some of the oldest financial institutions in the nation) that your retirement savings is protected against ANY future loss due to downside market risk?  The good news is there IS a way out of financial insecurity and unpredictability, and I've seen so many people benefit from it. You can safely secure and grow your wealth and have access to the cash you need while guaranteeing a comfortable retirement and setting up a legacy to be left to those you love.

 

The chart below shows a comparison of $150,000 invested in an Indexed Annuity and five high performing Fidelity mutual funds over the past 10 years. Several of these Fidelity funds enjoyed 10 year returns of over 100%. However, the Indexed Annuity far outperformed the Fidelity funds over this period…and the Annuity provides the added value of GUARANTEED ZERO downside risk. Whereas, all of his Fidelity accounts are totally exposed to market risk.  NOTE the significant declines for each Fidelity fund in 2008.

 

 

Further, ALL of these funds have produced low to negative performance since 2014.  So, when the next double digit market decline hits, will your retirement savings be insured and guaranteed or will you be at risk to another 30% (or more) market decline?

 

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