by Jason Keeling
The bull market is more than 10 years old, and many investors don't want to get caught unprepared in case of an unpredictable event such as the recent coronavirus outbreak, or the outbreak of a new trade war.
As investors become more cautious about the stock market, now could be a good time to consider a fixed index annuity. These financial products offer some guarantee of principal protection in a down market by putting a safety net under your portfolio if the market fails.
Fixed Index Annuities
According to a recent article in the Pittsburgh Post-Gazette, worries about stocks are stoking record-high sales of fixed index annuities. The Post-Gazette cites Cerulli Associates, which found that sales of fixed index annuities reached an all-time high of nearly $74 billion in 2019, accounting for 57% of all annuity sales.
Similarly, stockinvestor.com reports that a stock market crash proof investment portfolio can include fixed index annuities that are designed to provide a positive return in bullish years and avoid any losses in bearish times.
Better Returns, Rate Floors
Fixed index annuities are designed to offer better returns than a bank CD. Their annual growth is benchmarked to a stock index such as the S&P 500, the New York Stock Exchange or Nasdaq. But crucially, they include rate floors, meaning they will never fall below specified return levels, even if the underlying stocks index has a significant drop.
Fixed index annuities are also tax-deferred products and are regulated like insurance policies. If you'd like to learn more, here are five myths about fixed index annuities that you should know about.
Protect Your Assets with Farris Financial
Here at Farris, we understand the importance of protecting your assets. That's why we're proud to offer Indexed Annuities as a way to protect your investments while maintaining positive growth potential.