For many nearing or in retirement, the headlines feel closer to home than ever. A sudden drop in the market doesn’t just sting, it can feel like your plans are slipping through your fingers.
The pressure to make the right decisions with your savings is real. And when you’ve spent decades building toward a future, the idea of that future becoming unpredictable can be overwhelming.
In this short video, I share how certain annuities are being used to create more stability during uncertain times. I walk through how they work, where they might fit, and what to be cautious of because they’re not all the same.
You’ll hear:
- Why timing matters when drawing income from investments
- How fixed and fixed index annuities can help reduce exposure to market losses
- What makes an annuity a good fit for some, and not for others
If you’ve been looking for a way to feel steadier in your planning, I hope this gives you something useful to think about.
My team and I are always here to answer questions or just talk things through, especially during uncertain markets. Don’t hesitate to reach out; we’re here to help. Call (480) 247-9090 or email info@SWAfirm.com.
Transcript
The markets have had a wild few years with surges, crashes, and corrections. If you are approaching retirement, those swings aren’t just numbers. They can impact your day-to-day income and your ability to stay on track.
How Annuities Provide Stability in Unpredictable Times
Let’s talk about how annuities can create stability when everything else feels unpredictable. I’m Brent Matthew, founder, CEO, and portfolio manager at Scottsdale Wealth Advisory. We specialize in helping retirees and pre-retirees build retirement income strategies that stay strong even when the market doesn’t.
Risks of Market Downturns Near Retirement
In just the last few years, we’ve seen portfolios lose value overnight due to inflation spikes, geopolitical tensions, and interest rate swings. When the market drops 15 to 20 percent, retirement portfolios take a hit, and drawing income from those accounts during a downturn can lock in losses that are hard to recover from. The closer you are to retirement, the less time there is to bounce back.
Fixed Indexed Annuities Explained
That’s why many investors turn to tools that remove uncertainty from that equation. Tools designed to provide stability, no matter what the market does next. Fixed annuities offer a guaranteed interest rate, and there are no surprises.
Fixed indexed annuities, or FIAs, give you the chance to earn interest based on a market index, without being directly tied to losses. Both provide income streams that don’t fluctuate with the market, meaning your principle is protected and your income is predictable. Of course, not all annuities work the same way.
Considering Variable Annuities and Added Features
Some come with greater risk and greater complexity. Variable annuities are market-based and don’t offer the same level of downside protection. Some include income riders that guarantee payments, even if the account value drops.
Who Might Benefit From Annuity-Based Income Strategies
These can work well in the right context, but they come with more risk and more fees. So how do you know if any of these options actually make sense for your situation? Annuity-based income strategies can be a smart fit for retirees looking to lock in a steady paycheck, investors who have already accumulated wealth and want to protect it, and those nearing retirement who want more certainty in a volatile market. At Scottsdale Wealth Advisory, we use our proprietary 5-star annuity rating system to find annuities suited to your goals, income, and lifestyle.
Next Steps for Your Retirement Plan
If you’re ready for a complimentary financial coaching session, call 480-247-9090, email info@swafirm.com, or book directly at calendly.com. You worked hard to build your retirement. We’re here to help you protect it. I’ll look forward to speaking with you soon.
