Asset management strategies have evolved over the past 20 years. It is now possible to benefit from the stock market’s advances without losing one’s gains during a subsequent market decline.
The solutions and products that were available when you began planning for retirement are different from those available today.
Contact us to explore a personalized Safe Money Plan.
Safe Money Plans
A Safe Money Plan is an investment in which your money accumulates interest based on personalized investment strategies, while not being at risk in the stock market.
At Lifetime Strategies, we utilize Safe Money Plans that protect your principal, while providing market-like gains. These solutions are proven, financially sound, and based on actuarial statistics.
A prime example of this is a Fixed Indexed Annuity (FIA). In a FIA, interest is based on how well certain market indices perform, while keeping your money safe from the risk of market fluctuations. Your account value can never go down due to market volatility.
FIAs are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the issuing company, as well as the State Guaranty Association. They provide the potential for interest to be credited based on the performance of specific indices, without the risk of premium loss due to market downturns or volatility.
An annuity represents a simple promise. It is an insurance contract. Lifetime Strategy offers annuity products from the highest rated domestic insurance carriers.
FIAs are now the most popular type of Fixed Annuities because of the market-like interest potential they provide, as well as their protection and security. A FIA is an investment vehicle that keeps your assets safe from market downturns with the added benefit of being tax-deferred.
FIAs may be used for any of the following:
• Preservation of Principal
• 401k • 403b Rollovers
• Traditional IRAs • Roth IRAs • SEP IRAs
• Lifetime Income Planning
• Consolidation of Stock Market Accounts
• Inheritance Planning • Sale of Property
• Qualified and Non-Qualified Plans
• Growth • Legacy
• Tax-Free Lifetime Income
• Worry-Free Retirement
Some of the principal benefits of FIAs are the Volatility Control Feature and the Annual Reset Feature. The Volatility Control Feature means that all interest credits are “locked-in” and the gains cannot be lost due to market downturns.
The graph below compares $100K invested in a Fixed Indexed Annuity strategy, the black line, vs. $100k invested in the S&P 500, the red line. Notice the “ladder-like” effect of the FIA. The FIA never goes down in value because your assets are not directly invested in the S&P 500 index. When the S&P 500 decreases, your FIA remains stable and does not decrease. No interest is earned and no account value is lost.
Comparison chart of FIA Account and S&P 500 (1999 - 2019)
During the financial meltdown at the end of 2008, we understandably had numerous calls from clients asking, “How much did I lose?” But, because their funds were safely invested in FIAs and not at risk in the market, we happily said, “You haven’t lost a penny!” None of their accounts had lost any value.
Funds within the FIA compound on a tax-deferred basis and are one of the few products that can guarantee a steady stream of income for life.
“Doug is a true professional. He has always been an expert in our business dealings together.”
David L., San Francisco, CA
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