What's inside your "diversified" retirement account?
Many 401(k)s and IRAs are built on funds that track major stock indexes. When a very large company joins an index, those funds buy its shares automatically, whatever the price, and the people who own the fund have no say in it. That can concentrate more risk than most savers realize.
If markets fall close to retirement, there may be little time to recover. That is sequence-of-returns risk: the order of your returns matters as much as the average, because withdrawals during a downturn lock in the losses.
A different kind of protection
A Fixed Indexed Annuity (FIA) is built differently. Your principal is protected from market losses, and interest is credited based on an index's performance, up to a cap. It is not a stock investment and it does not capture all market gains. For some families it can be the protected part of a bigger plan, alongside growth assets and life insurance.
We help families protect what they've built, at any stage of retirement planning.
This article is for educational purposes only and is not tax, legal or investment advice. Fixed Indexed Annuities are insurance contracts, not stock market investments, and are not FDIC insured. Guarantees depend on the claims-paying ability of the issuing carrier. Caps, participation rates, surrender charges and rider fees apply and vary by product and state. Any recommendation is made only after a completed suitability review and delivery of current carrier materials.
Marc Merritt NY Lic LA-1010090 (since 2001) | Marylene Teopengco-Merritt NY Lic LA-1298496 (since 2017) | Licensed: NY, NJ, PA | Nationwide carrier appointments pending | www.mmtfininsurance.com