May 31, 2017

Are You Recovered from 2008?

By Richard J. Schillig, CLU, ChFC, LUTCF
Independent Insurance and Financial Advisor

This headline article caught my attention in a recent financial advisor internet publication; “9 Years Later, Workers Still Recovering From Great Recession.” Transamerica Center for Retirement Services released in mid-December results of its 17th annual retirement study, asking workers about their retirement outlook. They surveyed more than 4,000 adult workers, 6 percent of whom were still working past age 65.

The article continues: “Less than 40 percent of workers said they have recovered financially from the recession that started in December 2007, according to a report from Transamerica Center for Retirement Studies. Thirteen percent

said their recovery hasn’t started yet, while 7 percent said they may never recover. American workers are still struggling to regain their financial footing from the Great Recession and its after-effects,” Catherine Collinson, president of TCRS, said in a statement. “Most are concerned about the future of Social Security and few are very confident about their retirement prospects.”

Folks – I was literally jolted – to hear that less than 40 percent have recovered financially from the recession that started in Dec 2007 …… and continued through 2008. Our bar graph charts that track the history of major market indices for the calendar year show Dow lost 32 percent, S&P lost 38 percent and Nasdaq lost 47 percent for calendar year 2008. Further this same survey shows lukewarm recovery can be seen in respondents’ retirement outlooks. This survey found 41 percent of workers have somewhat recovered from the financial crisis; a similar percentage – 47 percent – are somewhat prepared for retirement. ONLY twenty percent of respondents said they have fully recovered from the crisis; ONLY 15 percent are very confident they’ll live comfortably in retirement.

Wow these statistics are concerning!! My clients have not lost money in 2008 or any other time due to the very special safe money harbors we recommend. The creative use of our annuity strategies with the fixed and fixed index arrangements continue to guarantee account values will not decline with stock and mutual fund market declines. We offer a very special index annuity that pays an initial 20 percent premium bonus and a 50 percent bonus on annual interest earnings. These values do not decline with stock & mutual fund market declines. When interest earnings are posted and account values increase. These increased account values then never decline when the stock & mutual fund markets decline. Values will either stay the same from one reporting period to the next OR will increase. Values will NOT decline with declining stock and mutual fund markets.

Annuities are without a doubt the most misunderstood financial product in industry today. What is an annuity? An annuity is simply a financial product offered by a life insurance company. Annuities are only issued by life insurance companies. As with any financial product there are advantages and disadvantages of annuities. Our clients have not lost money because of our creative use of annuities. Encourage all our readers concerned with today’s very high stock and mutual fund markets – to consider making safe a portion of the nice gains we’ve enjoyed over the last 9 years of positive markets.

If you are not yet recovered from the financial fiasco of 2008 and concerned about the potential of a repeat of that year call us for a safe money harbor option. Fixed and Fixed Index Annuities guarantee the safety of money.

During the month of June we continue our Community Meetings focusing on the basics of Medicare and the options available. Our Medicare options protect money from the high costs of healthcare. Join us this month to learn more of these options. See out ad this page.

Filed Under: Finance, Retirement

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