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.
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Bosworth Financial Group are experienced and knowledgeable financial specialists in the Tampa Bay Area. We specializes in estate and retirement planning. We are energetic, self-motivated professionals. Bosworth Financial Group is very passionate about helping our clients prepare for retirement. With decades of experience, we have worked with many clients guiding them through what he considers one of the most important transitions in their lives. Contact us today to schedule an appointment and start the retirement process.