With news reporting the markets are nearing bear market territory I’m starting to be asked what that actually means. Let’s start with definitions: “A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more.” “Bear markets also may accompany general economic downturns such as a recession.” How does that affect you? It depends upon where your savings are. If you are invested directly in the market you are at risk for this type of decline in the value of your portfolio. On the other hand, any savings you have put into fixed index annuities don’t lose money when the market declines. That’s because the FIAs are not direct market investments and while you can make money when the market goes up, you will not lose money when the market declines. Call us, we’ll explain what that means, and help you navigate these difficult times. We’re always here to help.

 

Read Full Article