Despite that the stock market is currently the highest that many of us have ever seen it in our lifetimes, the investment industry in 2018 reveals that protection from potential losses is still a high priority for many smart investors.
There is a cross section of people who want their investment money protected from stock market losses, but who also want to earn a reasonable rate of return. People in that situation are increasingly gravitating toward good index annuities because that is exactly what these types of investment products can provide.
According to a TIAA-CREF study, the number of people who have their money invested in good index annuities is up 40 percent since 2008. That’s because they know that a good index annuity allows them to have their money protected against losses while still allowing them to participate in stock market gains.
Another study showed that the top 1 percent of income earners are more than twice as likely to own an annuity as any other group. That indicates that the more money people make, the more they realize the need for safety in retirement. In fact, the U.S. Government Accountability Office says that retirees should more aggressively consider annuities as one of their retirement income options, as the best types of annuities offer you protection against losses, growth potential and guaranteed income for the rest of your life if that is what you want or need.
Relevant to annuities, the state of the investment industry in 2018 also reveals that the insurance industry is in the strongest position it has been in decades. In addition, the index annuity business is up by 4 percent compound interest per year over the last five years.
With the increasing popularity of good index annuities as investment options, many companies have entered the business of index annuities over the past several years. Now, there are more than 40 companies in the United States that offer the investing public index annuities, which represents thousands and thousands of different products. Within each of those products, you as the investor have the ability to choose an index that the growth of your money is based upon—the S&P 500, the Dow Jones Industrial Average, the NASDAQ, etc.
According to our research at Ty J. Young Inc., the best index historically is the S&P 500. It represents 500 different stocks—essentially 500 of the biggest companies in the world, which means it’s a smoother ride up the growth curve.
Instead of choosing an index, you can choose a crediting method, and the one that you want is obviously the one that will give you the most upside potential. Right now, the best crediting methods are offering maximum gains between 15 and 20 percent!
As the state of the investment industry in 2018 shows, it’s evident that investors are realizing that while this stock market may be at a pinnacle, they still want their nest eggs protected against losses while having the ability to earn a reasonable amount on their principals. A good fixed index annuity, which is the type of product that we offer our clients at Ty J. Young Inc., can do just that. Give our qualified financial advisors a call today at 877-912-1919 to learn more about what we can do for you.