How To Protect Your Recent Stock Market Profits

Since November of 2016 the stock market has hit record high after record high which has created an estimated 3 trillion of additional wealth for stock holders.If you own stocks or mutual funds your money should have done well and had nice gains.

The next question is how much longer will it last? Will it come back down to where it was? If it comes back down might it even go down more? The answer to all of those is NOBODY KNOWS! People have been trying to time the stock market for generations and very few have been successful.

Do you want to give your stock market gains back during the next downturn? Do you want to lose money when it goes back south of where it started its upward trend? Would you like to keep your gains but not give up the possibility of future upturns?

You can reallocate some of your stocks and mutual funds into programs that protect your newfound gains while allowing you to participate in future gains should they continue.This can be done with the use of a solid fixed indexed annuity.

When you purchase a fixed indexed annuity your money will track one of various indexes (actual index depends on the product and company  chosen by you and your adviser) with the protection against any market downturns that may occur.If you purchase an annuity and the index you track goes up over the next year or two your money will grow along with that index (actual growth rates vary greatly based on the product chosen) but if that index goes down during the same period your cash won’t go down because of that market and index loss.

You’ll need to know some terms and ask some questions about your potential investment. Here are some to consider but not an exhaustive list:

  • Will your potential gains have a “cap” on them? Meaning your gains could be limited regardless of how the actual index performs.
  • If your index potential is “uncapped” what will be the “spread” between how the index actually performs and how much your cash actually be credited?”
  • What will your participation rate be on the index? Meaning if the index goes up 10% will you get full credit or 30% of the gain? 50 or 60% of the gain? Will you get full 100% credit?
  • Will there be any fees associated with the Fixed Indexed annuity you choose? If so, what do you get in exchange for any possible fees?Is there value in the fees or is it just taking money out of your pocket without giving any fair value in return?
  • Do you want a lifetime income rider? For a fee many of these products will provide a rider that says they will pay you a certain percentage every month for the rest of your life no matter how long you live.So you would be guaranteed the income from the money even if eventually the money in the account is actually spent through.What is that fee for the rider?
  • How long of an early withdrawal period does the product have? This is a program for longer term money that you don’t mind letting alone and in the program for 5 to 10 years.
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If you would like more training on this particular program, feel free to visit www.perpetualpensions.com and watch the video halfway down the page.No ...

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