A. While stock-oriented retirement plan offers attractive return, it is also subject to frequent declines, see facts below:
1990 - 2010 Dips (5% or More) Correction (10% or More) Bear Market (20% or More)
Total Number 378 122 32
Per Year Average 3.4 1.0 1 every 3.5 years
In addition, with the world economy increasingly interconnected, U.S. stock market could be easily rocked by an event at another country.
For retirement funds, it is prudent to incorporate other financial products, in addition to stocks.
A Fixed Annuity could help a retiree to retire at ease because of the following unique features:
- Guaranteed interest rates and guaranteed return of principal (less any withdrawals of interest or principal).
- With Fixed Annuity as part of retirement plan investment, it could preserve one's assets, and softening the impact of the choppy stock market on portfolios.
- A conservative product that provides safety of principal, tax deferral, a competitive yield, liquidity, and estate planning.