The market fell sharply Friday with Dow losing 603 points, or 2.1%, on its worst day since August. The S&P 500 shed 1.7%, while the NASDAQ dropped 1.6%.
This recent sell-off comes as traders grow increasingly worried about the potential economic impact of China’s fast-spreading coronavirus. This is a good reason to remember that investing in the market comes with a lot of risks and a lot of unknowns.
With the market recently hitting all-time highs it would be wise to consider how much risks you have in your portfolio and removing some of that risks into things that have no market risks at all but at the same time can still participate in a market rise.
There are many variations of fixed indexed annuities that can allow you to participate in an index gain without any market risks. Many of these contracts have index strategies with participation rates (PR) as high as 135% currently if your seeking accumulation and growth with no risk to your principal.
If you're seeking growth and income, then your focus should be on a contract that has a built-in lifetime income rider providing a lifetime of income like a pension.
There are many variations of fixed indexed annuities and no one shoe fits all that’s why you should only work with an advisor well versed on this subject to find the right contract or a combination of contracts to meet your objectives.