Thursday, September 15, 2005

Annuities and the Economy

Well, it's no secret that we are going through tough times right now. Yes, oil prices are up and the economy is sluggish at best. Add a devastating hurricane in the mix and we could be in for some tough times. So what does this have to do with annuities? Well, annuities can be multi-faceted vehicles. Variable annuities can provide upside in good markets and downside protection (not a fan of for the most part). Fixed annuities can provide shelter from a falling market and declining interest rates. Equity index annuities can give a little of both.

Whatever the situation is, annuities may or may not fit. However, the point I want to make is, your investment strategy should not be based on fear or greed. Nor should it be based on the economy. It should be based on a well thought out plan. If annuities fit nicely in your plan, then use them. If they don't fit, then forget about it. However, it is important to constantly assess your financial situation. Find investment vehicles, and or proper annuities that can fit YOUR situation.

And last of all, always be careful of the optimistic economists that say the market has to bounce back...because it doesn't. Stock markets never do what we expect. Save some money for a rainy day and don't hesitate to be cautious with your investments. The same go for annuities. Tomorrow, I will be talking about how choosing the right annuities, especially in this type of economy, can be so critical.

Until then...


Yours Truly...

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