Protect Yourself from a Bear Attack
Although the BEAR usually hibernates in the winter, she is showing herself fully active in this massive market correction brought on by the subprime mortgage bebacle. Be alert and protect yourself from bear attacks.
For those of you that are retired, are about to retire in the next few years or simply have all your retirement eggs in one basket in the securities markets, now is by far the best time to re-examine your portfolio. A sudden correction in the market can substantially decrease your retirement assets with no time for adequate recovery. This can crush the retirement portfolio that many have worked all of their lives to create.
What if you can get just about all of the upside potential of the market without any of the downside risk? Would you be interested in seeing how that may look for your portfolio? In other words, suppose you decide to take a trip to Las Vegas for the week and we make you the following promise:
You can gamble at one of the casinos for the week as much as you like and we will guarantee in writing that no matter how bad you do, you will never lose! In fact, we guarantee that you will walk away from the tables with no less than what you started with, plus some interest. If you win, you get to keep a large portion of the winnings.
Does this sound too good to be true? Read on…
Over the last few years there have been a handful of Equity Indexed products that have shown some attractive returns and offer something very similar to the Las Vegas example. Sorry, but drinks are not on the house… you’ll have to purchase those on your own. These products are fairly new (about 10 years old) and up until now, there has not been any significant data over a period of time to analyze how these products performed compared to actually being in the market. Well the data now concludes some pretty impressive results and the numbers of these products being sold is increasing everyday.
By not participating in any down year, the risk associated with being in the market is eliminated. In return for this protection of non-participation in any down years, some product carriers place caps, surrender charges in the early years of the policies and administrative fees to hedge their risk. These indexed products are long term contracts and are not to be confused with short- term investment strategies. Knowing all the details prior to jumping into one of these investments will ensure you are making a wise, confident and informed decision.
Over the last 10 years these products have shown to perform quite well, so they are significantly growing in popularity. Industry data predicts that these investment and insurance products will grow over the next five years from 50 million products sold last year, to 500 million within the next five years. The product carriers are all competing for this piece of the market and are offering some very attractive bells and whistles that go along with their products.
These products guarantee that you will never lose any penny you put into it, nor will you lose any penny of gain once credited to your account either. If you would like to know more about these amazing vehicles for asset protection and accumulation, please contact us at your convenience. If these products are not for you, there are others that may buffer downside protection while giving you all of the gain of the underlying index. Call me today to learn more.
For more information call Peter Zomick at 704-509-1141, ext. 201
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