If you have owned a variable annuity over the past 10 years you have been on a major roller coaster ride! The market was up and down and down and now it is up. But with gas prices so high and an election coming, how long do you think it will last?
When do you pull the plug and find some safety in your investments? It could be now! Or not depending on your own personal political beliefs. For me it's not just the election year but the prices at the pump. High gas prices slow down consumer spending which tends to lead to down or slower markets.
Either way now is a good time to take a look at your variable annuities and make some decisions. Maybe this is the year you 1035 exchange your variable annuities into indexed annuities so that you never lose money again and still have the ability to earn a good return. Or maybe now is the time to reduce your risk in the market by pulling back on your most aggressive funds or stocks.
There is no shame in wanting some safety in your portfolio. You should never risk your retirement income generating assets. If your variable annuity is not part of your income generation then you probably don't have much to worry about.
If you want to learn more about your variable annuity and how it works read - What are Variable Annuities?
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