It’s Coming: Protecting Assets from a Market Correction

It’s Coming: Protecting Assets from a Market Correction

In the game of investments, how many times have we heard the old adage, “Buy low and sell high”? In a perfect world, that’s what all investors do. In reality, the opposite happens – more frequently than we’d like to admit. 

The game of investments isn’t really a game because all players are at risk of losing – losing assets they need for income, retirement, savings, etc. An imminent market correction increases that risk. We’ve enjoyed the market’s highs, but we know it will likely see some real lows. When is the next correction coming? Tomorrow, next week, next month? History tells us it will be soon, though we can’t predict exactly when. 

So how can players protect their assets from a market correction? Annuities are one option. A fixed annuity guarantees a fixed rate of return over a time period you choose. As a general rule, the rate of return increases with the length of the time period. 

Some investors want more than just guaranteed returns, however. They don’t want to miss out on market gains. A fixed indexed annuity allows both. Its rate of return is tied to gains in a specific index, such as the S&P 500, and its principal is protected from market losses. 

The Bottom Line: Both of these annuities are guaranteed to protect assets when the next correction comes. Talk to your clients about their options before they lose anything in the game of investments.