The market has been a bull market for over ten years now. Only two other times in history has the market maintained bull status for over seven years. It is only logical to begin to wonder how much longer the current trend can hold. It’s not a question of if the market turns, it’s a question of when. If you are approaching retirement, it may make sense to look toward investment vehicles that can protect your funds.
With talk of a possible market downturn, many people turn to fixed annuities to protect their assets. While these contracts can be a great option, and may very well work for you, there are downsides to consider. These contracts can have negative tax consequences for those looking to leave money to an estate and are usually very long-term contracts. It does not always make sense to lock up your money for a long period of time to avoid what could be a short market downturn. If you were to do that, and the market turns around after a short fall, you lose out on growth opportunities. There are other ways you can protect your assets from a downturn while still offering opportunities to participate in market growth should the market rise.
If you are interested in learning more about options like these, that may protect you from market downturn but still allow you to participate in market growth, give our office a call and we can see what options may work for you.
Leave A Comment