Like yourself I also invest in the stock market and I am also very concerned with this very question of will the US Stock market crash in 2021. Depending on your age and which companies you are investing in you might be worried that your individual stock might disappear all together depending on multiple factors to include, if COVID-19 produces another global shutdown.
Today it was announced that Scotland goes into full lockdown and that England will soon follow. This lockdown is supposed to last the entire month of January. The restrictions outlined that people are to stay at home and limit gathers to 1 on 1 only.
The US is also experiencing large jumps in covid cases and hospitals filling up. My wife just sent me a message telling me that our local grocery stores here in Long Beach, CA shelves are being depleted of food once again. She stated that chicken was not available. This will inevitably cause more panic in our city along with many others.
If the global economy shuts down again, the amount of employement devistation could be much larger than the first shutdown. Employers have already spent through their reserves and I can’t image they would be able to survive.
In addition unemployment will face another round of new unemployment filings. This will mean for those employers who do survive they will once again be faced with higher payroll taxes in an attempt to cover this cost.
Clearly for many investors, there is no better time to move your risk money into more conservative investments. What options are there for those investors who are now at an age that a 50 or 80 percent loss on your money would be unrecoverable.
If you are one of these individuals that is nearing or are 60 years of age or older a Fixed Indexed Annuity could be the right answer for your investment portfolio. By moving your funds over to an Fixed Indexed Annuity, you will be protected from large market losses. Annuities do not participate in stock market losses but they do participate in some of the stock market gains.
We do not recommend locking your money up in a safe as your money will no longer have the option of growing once the stock market starts to bounce back. We do recommend have some liquid money ready in case of an emergency and feel free to put that into a safe place.
Let’s say you have $2,000,000 in your 401K and IRA combined. If you move all of this money into an Annuity and the Stock market goes down by 60 percent you will still have $2,000,000. This is because a Fixed Indexed Annuity does not participate in the stock market losses.
That same investment stuck in the stock market would now be worth $800,000. Your investment would have to grow by 150% just to get back to your original $2,000,000.
During that same period of growth, your annuity would continue to grow but continues to grow at the your base number of $2,000,000. This is a major advantage of an indexed annuity.
Depending on your financial goals will depend how we structure your Fixed Indexed annuity. If your goal is to pass on your money to your heirs then we would put together an annuity based on growth. If your goal is to ensure you have guaranteed income for life then we would make sure you had those protections in place.
You might also want a mixture of passing on money to your heirs and income protection. We are able to create two separate programs to meet your financial needs assuming you have enough money to accomplish this goal.
Integrity Now Insurance Brokers is an annuity expert and has access to over 200 annuity products and annuity carriers. Our team of experts have help our clients move over $200 million dollars from their 401K and IRA into different annuity products.
Give us a call so we can help move your retirement money into an annuity. We are your Safe Money Expert!
Integrity Now Insurance Brokers, Inc.