COVID-19, inflation and the Ukrainian war have all contributed to a volatile stock market in recent weeks. Volatility will continue as usual while one sector is experiencing profitability, another is declining, resulting in declining stock market valuations. For investors, the up and down performance creates market risk but is part of the underlying economic fundamentals of our U.S. stock market system:
All market sectors respond similarly, as geographic risk, production, economics, and lifestyles are impacted worldwide. Volatile stock market conditions may be optimal for investors and their financial professionals to create strategies to help offset market risk in retirement. As an investor, what can you do during periods of volatility?
Fixed-indexed annuities help solve the challenge of outliving your money-no matter how volatile the stock market. Investors use fixed-indexed annuities as a source of retirement income to draw from when their other retirement assets are at a low valuation due to market risk. Fixed-indexed annuities are an essential component of retirement planning due to these features:
Remember that future stock market performance is not predictable and that the time to liquidate is not during a volatile stock market. Your financial professional can help you determine a strategy that includes fixed-indexed annuities to offset today’s volatile stock market performance.
The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website. An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Consult a tax advisor for specific information.
For those who are looking for financial advice, we realize the available options are many and deciding who to work with is a challenging problem. At Sterling Oak Wealth Management, we know that it is your retirement, and you should have control over it. We offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!