Stop Watching the Volatile Market: Look at Fixed Annuities

Watching the Volatile Market: Look at Fixed Annuities By Toma Franklin, Staff Writer

The stock market goes up and goes down.

When it goes up the financial planners and the stockbrokers tell us how much money we have made and how great the market is. The economy is fine and everything will be just perfect….rosy, sunny days lay ahead for all of us. Right?

What happens when the reverse occurs and the market declines? How about we use a phrase that is greater than decline? How about crashing since that is what is happening now? What do the brokers and financial planners who have sold us these great equities say now? Is it real money or is it just numbers in an account?

These downturns are described in a very nonchalant manner: paper losses. A paper loss is really not a loss, is it? In reality they are correct in the fact that a loss (or gain) cannot occur until the asset is converted to value. At that time the real value of the asset becomes a hard asset.

Paper losses are not real losses, are they? But what if these funds are important? What if your financial future is dependent on this not-real money becoming real? Is your life affected by paper losses?

Paper losses are not part of my life or my business. Guarantees that at anytime can be accessed for real value without the fear of loss. That is my world -- safety and security. I am not sure how I would ever explain to my client that their losses were only paper losses when I know how much they are counting on these funds.

Annuities provide this safety.

Products issued by insurance companies fully guaranteed and fully free from risk. Annuities protect their owners from “paper losses” and assure that future financial responsibilities will be met without exposure to loss.

Anyone who feels that paper losses are really financial losses doesn’t understand the value of safety and security. Paper losses create stress and worry and a situation where poor judgment can change how a person lives their lives. Annuities provide just the opposite result: freedom from worry and loss.