It’s all about timing, or is it?

It’s all about timing, or is it?

The longer the recession grinds on, the more people realize the marvel of indexed annuities. Imagine all of your money intact today, never losing sleep over it, and having complete control over the entire amount.

Is there a bad time to purchase a Fixed Indexed Annuity (FIA)?

[A] On August 21, 1987 the S&P hit an all time high of 355. By December 4^th [D] it had fallen 37 percent to 224. Traders were jumping out of windows on Wall Street. (Not really, at least I didn’t see any. This is a metaphor indicating they were having a bad day.)

Had you picked up a FIA on August 21, 1987 (you couldn’t by the way, because they didn’t exist) you would not have lost a penny.

From December 4, 1987 until March 24, 2000 [D – B] traders were jumping from street level into their 2^nd and 3^rd story offices. (Not really, at least I didn’t see any. This is my way of saying they were having a great decade.)

Between March 24, 2000 and October 4, 2002 [B – E] the S&P declined 48 percent. In other words, investors who lost money would need a 100 percent return just to break even. Between terrorists and the tech bubble bursting, traders couldn’t figure out which way to jump through their window.

Indexed annuity savers would view zero as a hero as far as rates of return are concerned. They didn’t lose a dime in their annuity savings account.

On October 12, 2007, the S&P hit another peak of 1,500, only to drop 43 percent again [C – F].

Fixed Indexed Annuities is one of the reasons a good spending plan coupled with the right savings vehicles, remove the need to ever put your money at risk by investing.