Stock Market Returns VS Indexed Accounts
Can you imagine losing over 30% or more of your retirement nest egg twice in a ten year span? It happened to thousands of people because of their 401k, 403b, IRAs and other investments that were in the stock market. Many people were afraid to open their monthly statement because they did not want the bad news. If you have a 401k or 403b with a previous employer, it is important to make a decision about that money which can be rolled over (for FREE) into an Indexed plan for safety. PLUS, Indexed plans which can be set up to pay you monthly, for LIFE, just like the old workplace pensions.
These Indexed plans have a distinct advantage...they CANNOT lose money due to a market downturn! The principal and interest are never subject to stock market declines. But, when the market is doing well, they go up since they are "indexed" to the market but not IN the market.
With today’s market challenges and low returns on CDs and similar investments, Indexed Plans can be the answer since they share in the increases of the stock market index, but not the losses. Compare the data lines to see the difference in returns 1999 to 2015. It illustrates the value of a $100,000 account. As shown, an Indexed Plan is a great product for money you CANNOT afford to LOSE. Most people cannot afford to lose their retirement nest egg.
NOTE: 401k, 403b, IRAs and similar investment accounts vary. This chart simply illustrates how Indexed plans are ALWAYS protected against loss while stock-based plans can suffer substantial losses that are VERY difficult to make up in the short-term. THAT can impact your retirement plans! Imagine if you wanted to retire in 2003 or 2009. You would not have had enough money!