Retire Safe & Tax Free - Dow Plunges 531 Points in Global Selloff

A global market rout intensified Friday, pummeling stocks and commodities, as concerns about China's economy pushed the Dow industrials into correction territory.

Both the blue-chip index and the S&P 500 posted their biggest one-day percentage drops since November 2011, with the Dow closing 10% below its recent high. U.S. oil prices also briefly dropped below $40 a barrel on Friday, a level not seen since the financial crisis.

The Dow Jones Industrial Average declined 531 points, or 3.1%, to 16460. The S&P 500 dropped about 3.2% to 1971. The Nasdaq Composite shed 3.5% to 4706.

And where is the market today when you are reading this article?

Given today's fragile and unpredictable economy, many people are looking for ways to provide GUARANTEED income for life from their retirement savings. This is the finding of a report entitled “Money Matters� from AARP, the 40-million-member association for people age 50 and over.

The report notes that retirees should guarantee enough retirement income to cover recurring expenses such as rent or mortgage payments, utilities, food and medicine. Other issues addressed in the report include when to claim Social Security benefits, whether to buy an annuity, and what to do with homes and mortgages.

"Rules of thumb no longer apply," according to AARP. Their report also offers general financial guidance that challenges some conventional wisdom, including not placing all of your retirement savings at risk in the stock market.

Income growth potential without risk

You may be aware that annuities provide regular payments for life. However, relatively few people use them out of fear that they are risky or inappropriate. People want growth potential WITHOUT the risk. With people living longer, facing increasing costs and addressing new challenges every day, risk cannot be part of the planning process for all of a person's monies.

Annuities can help retirees address today's economic challenges by offering greater potential for growth than what a traditional fixed asset can offer. Furthermore, annuities offer protection from market downturns.

When most individuals think of retirement, they think about how to save enough money. We have not spent nearly enough time discussing the best ways to take that money and turn it into an income stream that lasts throughout retirement for a lifetime.

Why does "annuity" seem to be a dirty word?

After the recent stock market decline, consumers are interested in safe retirement investments and products. Yet "annuity" seems to be a dirty word in many circles, particularly among financial advisors. They cite high fees, complicated guarantees on investment earnings, early surrender penalties, and agents who may not understand your financial goals or have your best interests at heart.

Reliable lifetime retirement income

When you retire, however, you need to shift your thinking and focus on generating reliable lifetime retirement income, which is the goal of annuities.

Annuities may also be a good investment while you're accumulating retirement savings, especially if they offer guaranteed rates of growth on the Income Account Value. Annuities definitely deserve a place in your retirement income portfolio. Given that you're planning for the rest of your life, it's well worth your time to investigate them.

Want to learn more about how annuities can guarantee your retirement income? If you have questions, feel free to leave them in the comment section or contact us today to discuss your personal situation.

Marc H. Weiss, Archer Weiss Insurance & Financial Services, Inc. Please Call Toll free: 1-800-831-2901 or (818) 610-8560