Because the market does not provide security, you may want your financial strategies to include some secured income products. For example, annuities, which are insurance products with guarantees*, can provide a source of supplemental income throughout your retirement.
Twenty-first century asset protection calls for more than just strategic asset allocation. Product allocation—buying instruments that can protect your monies from market declines throughout retirement— can be an effective means of protecting assets.
Diversifying your retirement assets among a variety of vehicles— both through insurance products and investments depending on what is appropriate for your situation—may offer you the best chance of meeting your retirement income goals throughout your lifespan.
*Guarantees are backed by the financial strength and claims paying ability of the issuing insurance company.
Disclosure: The guarantees of any contracts are contingent on the claims-paying ability of the issuing insurance company. Annuity withdrawals are taxed as ordinary income and may be subject to a 10% federal penalty if made prior to age 59 ½. Surrender charges may also apply during the policy’s early years.