Opinion: Get serious about reducing risks in your investments
July 6, 2020 by Keith Singer and Roy Rosner
Even though the economy is a shell of what it was prior to the COVID-19 pandemic, the S&P 500 is down only 6% for the year, and the NASDAQ 100 has recently set record after record, and is up more than 10% for the year to date based upon data available at Yahoo.Com.
The stock markets seem to think everything is going to work out simply fine. But what does the stock market know that we don’t. The pandemic has not gone away.
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Wink’s Note: A couple of points of clarification on this one:
1. Structured annuities do not allow “investors to earn the full returns of the S&P 500 on the upside while protecting a percentage of any possible loss by an amount called a “buffer.”’
Like indexed annuities, they provide LIMITED upside potential, but unlike indexed annuities, they also allow for downside losses (while also limited).
2. People who purchase indexed annuities are not “investors.” As indexed annuities cannot lose money as a result of market performance.
3. Indexed annuities do not have “zero” risk. Purchasers may get back less than what they put in if they cash surrender early, the index doesn’t perform, or there are rider fees.