KEEPING THE CHICKEN SAFE AND EATING THE EGGS
KEEPING THE CHICKEN SAFE AND EATING THE EGGS
Those of us who have money invested in the market are gambling that our chicken – or Principal Base – will stay nourished and continue to produce eggs – or future growth and income. But what happens if the market continues its roller coaster ride? If you rely on your mutual funds or stocks for income in retirement and the markets stagnate or lose value, you will have an ever increasing problem generating “eggs” or income.
This is because if you take income on a regular basis from a shrinking market, you are diminishing your nest egg in 2 ways – the money you take out and the market losses. And, every time you do take income after a loss, it is a loss you can never recover. Moreover, even though you may be taking the same amount out each time, it is an ever-larger percentage of the shrinking principal.
In short, your chicken is going to get very sick and the eggs more expensive to extricate. But, there is a very safe way to keep your chicken safe and healthy and still get all the eggs you want. Indexed Annuities guarantee an extremely attractive growth rate for future income without risk. In other words, a certain growth you can plan on. And, when it’s time to take income, or use your eggs, you can never run out. You will always be fed and your chicken will never get sick or die.