15 Dec INSURING a Portion of YOUR SAVINGS and INVESTMENTS BY STEVEN RINGO

Insuring your savings and investments may be a new concept to you; however, it’s has been a growing asset class since the dot-com crash in the early 2000s. Because there are a lot of concerns regarding market volatility and the potential for a near future recession or depression, billions of dollars are flooding into this asset class.

Most of you reading this article allocate a large percentage of your annual income toward many types of insurance. Health, home, life and automobile insurance all protect us from devastating and tragic life events we have limited or no control over. Another place a large amount of our annual income gets allocated to is savings and investments. These accounts are set aside for emergency funds, children’s college and future retirement income; they too have the ability to be insured or protected. Because savings and investments are subject to risk such as inflation, liquidity restraints, fees and losses, it’s crucial you become informed on ways to have a portion of these assets insured.

Below are some of the benefits people are taking advantage of inside this secure emerging asset class:

  • 100 percent protection of principal: If the stock market goes down, you stay protected.
  • Annual reset and lock: Gains lock-in on an annual basis. Example: You started with $100,000 and you made 4 percent; then your new floor is $104,000 for the following year. If the market goes down you stay 100 percent protected.
  • Fixed account: Have the ability to lock-in a competitive fixed account higher than all savings and money market accounts; also, higher than most one-year CD rates.
  • Market-linked returns: Have the ability to participate in a percentage of the market upside. Example: Market goes up 7 percent; you might make 4 percent depending on the strategy, cap, participation rate or spread.
  • Tax deferral/tax free
  • Lawsuit and judgement proof
  • Matching funds bonus of between 2 percent and 20 percent on all initial deposits.
  • Inflation protected income
  • Lifetime Income
  • Limited to no fee accounts
  • Living benefits
  • Flexibility and portability
  • Spousal continuation, beneficiary IRA or full transfer to heirs

Now as we wrap up 2015 and begin 2016, it’s time to stick to those New Year’s financial resolutions. My challenge is for you to designate some time to talk with your financial professional. As you might have seen in my last article “4 Defensive Retirement Planning Strategies for 2016,” there are things you can be doing now to prevent future financial heartaches. As always, thank you for reading, and I hope you and your family have a Merry Christmas and a happy and safe New Year.

If you have any questions please visit my website www.westridgeequity.com, email steve@westridgeequity.com or call the office today at (972)362-1126