Is a fixed annuity a good buy?
The Bear Market is here to stay for about another year, based on historical trends. And annuities are the best protector against the dramatic market declines suffered during these times.
How long is a Bear Market?
The average lasts about 1.4 years. However, the dot-bomb of 2000 lasted twices as long at 3-years. The length can also be dependent on the government’s ability to initiate Quantative Easing. This strategy enables the Fed to pump more money into the economy to stimulate growth. The problem is the Fed has no more money. Annuities can help stem loses.
What’s average loss in a Bear Market?
The average loss is 39%. However, the dot-bomb loss in 2000 was 49% and the housing bubble creash of 2008 was 57%. The COVID loss was 34%. It’s unknown how severe this downturn will be. Annuities guarantee principal against market declines.
What’s the recovery period?
The average Bear Market recovery is 4.9 years. This means the current decline will botton out sometime in 2023, and the recovery might be as long as 2028. How old will you be in 2028, and do you have the time to wait it out?
What are my options?
The best strategy is to stop the bleeding now and protect your money before the decline worsens. Annuities are the best product for protecting your wealth. A fixed index annuity, specifically, guarantees your principal against market loss, provides upside growth, and provides you access to the funds. These can also be used for income generation and welath accumulation.
Reach out to your Annuity Master agent to find out your options for leveraging annuities to battle against the Bear Market we are in. We might be in this position for another year. Can you afford to ride out the storm?