Tips for Dealing with Market Volatility
Advisors and clients today are struggling with unprecedented market volatility and the looming threat of a multi-year bear market. Over the last 70 years we have experienced 15 separate bear markets, with a median drop in stock prices of 26% and yet those that stuck with the market long-term have almost always come out ahead. In the meantime, for clients looking for stability, guarantees and conservative returns can benefit from the following options available from GBS:
Guaranteed Returns of Annuities
Annuities offer full preservation of client’s capital by guaranteeing the initial deposit and interest rates higher than CDs for a set number of years, as well as tax-deferred growth potential and a whole slew of other benefits such as high-water marks, and special withdrawal benefits in the event of nursing home confinement or chronic illnesses. Check out our selection of MYGA’s (Multi-Year Guaranteed Annuities) by logging on to our GBSLife Agent Portal.
Safety with Upside Market Potential
Indexed annuities allow participation in some of the potential growth in the stock market without risk of losing your principal. If markets falter, your capital is protected with no chance of market losses and interest credited, while changing from year to year, is generally higher than offered in CDs or savings accounts. Consider adding an income rider. There are many options available on most indexed annuities. One of the most popular ones credit your benefit base by 20% on day one. It continues to roll up/credit the benefit at 10% for 10 years, and 5% for years 11-20 (or until you turn on the income stream).
Once the rider has been activated, your income payments are guaranteed for life. It's a great way to eliminate the worry of outliving your assets and income.
Protected Retirement Income
Annuity payouts offer a lifetime of protected income that can’t be outlived. SPIAs, Longevity Annuities and annuitization options on deferred annuities all can accomplish this goal. Be sure to reach out to our annuity specialist for more information.
Replacing Lost Market Value
If you do suffer a permanent loss in market value from equity investments, life insurance is a relatively inexpensive and reliable way to replace the lost inheritance value to your heirs and loved ones. Should the market bounce back, you may be able to surrender the contract while regaining some, or all of your premium using certain policies that build cash value or have an ROP (return of premium) feature.
For more information, please contact your GBS Annuity or Life Specialist.
