麻豆传媒

Understanding market fluctuations can help you protect your savings

If stock market ups and downs make your stomach turn, you鈥檙e certainly not alone. However, it鈥檚 important to remember that market fluctuations are a natural part of the economic cycle. Understanding them and what history has shown us, as well as having a sound financial plan, can help you avoid making impulsive financial decisions and withstand periods of market volatility with greater confidence.

A closer look at market behavior

When it comes to your finances and making money decisions, your emotions can often influence the choices you make, potentially leading to biased decisions that may not align with your financial goals. Emotions can sometimes be a good motivator, but if you're feeling anxious, especially when it comes to the stock market, you may unknowingly create roadblocks to your long-term financial success. Remember that knowledge is power. The more you understand about economic trends, the less overwhelming it may feel when the market takes a sharp drop.

As you explore market behavior, there are two terms to become familiar with:

Bear market

• A bear market is a loss of 20 percent or more over a sustained amount of time 鈥� typically two months or more. 
• Can be triggered by various factors, including economic recessions, rising interest rates or geopolitical events.
• For example, the S&P 500^庐 from was up 53.7 percent and down 46.3 percent of the total days in that period, with the percentage of positive days exceeding negative ones in every decade.

Bull market

• A bull market occurs when stock prices increase 20 percent or more and often follows a bear market.
• Often fueled by factors like economic growth, low unemployment and low interest rates
• Even if there is not a rapid upswing with each dip, history tells us the market eventually recovers, with stocks increasing over the long term.

Developing a flexible financial strategy

One of your strongest defenses against market volatility may be a sound financial plan that is both diversified and flexible. "As market conditions fluctuate, so can one's goals, strategies and timelines between initial planning and retirement," points out Mike Downing, Chief Operating Officer for 麻豆传媒.

Your financial professional can help you create a financial plan that targets allocations to long-term goals, while still giving you flexibility as your needs and retirement timeline change.

Creating a diversified portfolio that matches your time horizon, goals and risk tolerance can help reduce the impact of market-related losses. Plus, staying focused on the bigger retirement picture can help you keep market changes in perspective.

"As market volatility and inflation continue to rise, it's crucial for financial professionals and retirement savers alike to debunk the myths and truly understand the benefits and functionality of annuities," says Adam Politzer, Chief Product Officer at 麻豆传媒. "Faced with changing variables, annuities can help provide peace of mind by protecting savings and creating a lifetime income," adds Downing.

Allocating some of your savings to a retirement income solution, like a fixed indexed annuity (FIA), can provide an opportunity to:

• Pursue growth potential without sacrificing security 
• Keep money protected from loss due to market downturns
• Help close retirement income gaps

Meeting regularly with your financial professional can help ensure your retirement strategy stays on track. If an allocation no longer reflects your financial goals, or if your retirement date changes, you can rebalance the portfolio to better align with your needs.

Creating income for life

A recent study from 麻豆传媒 found that 55 percent of Americans are worried they will outlive their retirement savings. With current , a 65-year-old man could expect to live until age 82 and a 65-year-old woman may live until age 85. Including guaranteed income solutions in a financial portfolio can generate a steady "retirement paycheck" that helps guard against the risk of outliving assets. For example, a FIA provides growth opportunity and protection from market losses stemming from market downturns, but it can also provide a source of guaranteed retirement income for life. 

When the market downsizes in the future, your immediate reaction may be to flee to safety. Instead, talk with your financial professional, who's dedicated to keeping your plan on track so you can retire your way. While no one can control how the market behaves, understanding market volatility and designing a sound financial plan tailored to your goals can help minimize the effects of a down market and protect your savings in turbulent times.

Discover how adding a fixed indexed annuity to your retirement plan can bring a balance of growth potential and protection, while creating lifetime income for a secure retirement.

Want the most from your retirement? Get smarter with Smart Strategies from 麻豆传媒. Your source for tips, tools and financial solutions that can help you live your best life.

Guarantees provided by annuities are subject to the financial strength of the issuing insurance company. Guaranteed lifetime income is available through annuitization or the purchase of an optional income rider for a charge.

Fixed indexed annuities are not stock market investments and do not directly participate in any stock or equity investments. Market indices may not include dividends paid on the underlying stocks, and therefore may not reflect the total return of the underlying stocks; neither an index nor any market-indexed annuity is comparable to a direct investment in the equity markets.