Corona virus, the market and retired people.
Hi Ms. Savage, Excellent advice, as usual on the effects of the coronavirus, the Bull market/economy, and all investors. As retired seniors, all of our income for my wife and me come from either our annuity’s, (some % in bonds), or social security. Some savings and a small CD. Don’t a lot of us seniors fit that same financial profile? With what you said about the market and the virus, aren’t those of us in this financial profile, in a fairly safe position, with a ‘Garrunted Minimum Income Base’ to annuitize, if the value of our stock and bond annuities, God- forbid, goes to zero in a hot NY – Stock Market minute? Just stay put and ride it out, or annuitize if it comes to that, and hope for the best!? We’re all in the same boat, just looking for some assurance that we’re listening, and understanding your expertise and advice. Thank you.
Terry Says
Yes, if you’re invested the way you describe, you can relax. You’re locked into your annuity with surrender charges. And you may not get hoped-for stock market gains.
In the end, you’ll get the promised interest crediting rate. And the insurance company gets to tell you how much you’ll get monthly. (They will build their costs into that withdrawal amount.). But since you’re not exposed to the stock market, you shouldn’t be worried.
My latest comments were addressed to people who have built up substantial profits I The stock market inside their retirement plans. I was ad I sing them to protect those profits.
I personally don’t think this virus is going to devastate the world. But it will impact global business, and corporate earnings — and stock prices!
