Though investors have been getting great returns with bonds, and more recently with equities, one should always consider looming investment risks.
What happens if inflation goes up?
What happens if stocks decline or interest rates rise?
As a protection from market volatility and inflation or interest rate risk, rebalancing into a fixed indexed annuity might be the answer to reduce these risks. Fixed indexed annuities reduce interest rate risk, lower volatility, and provide better inflation protection than cash. Most clients nearing retirement need to reduce market volatility. Annuity cash value offers growth potential linked to a market index with no downside risk.
