Investing is always a bit of a roller coaster ride, but 2018 is off to a start that would make even the most daredevil investor’s knees shake. In just one month, we have seen the first, second, and eighth largest daily points losses in history. Dow Jones fell 3000 points in less than a week! There have also been huge surges and whiplash-inducing rebounds, but not enough to stave off caution, which is creating an uncertain and increasingly pessimistic outlook on the markets.
That wild market ride just isn’t for everyone.
“The Dow Jones Industrial Average tumbled 362 points, helping to send U.S. stocks to the biggest two-day decline since May, while yields on benchmark government bonds touched April 2014 highs as caution crept into markets after one of the best starts to a year in recent history.”
Investors who are interested in safer and more reliable income growth may find that guaranteed income investment products are a more appropriate fit for their needs (and nerves).
The greatest benefit of guaranteed income investment products is right there in the name – they provide a guaranteed income stream for life. Income from these types of investments is not dependent on financial market conditions. Instead, they function more like a personal pension plan, providing consistent, recurring income payments to investors.
Guaranteed income investments provide income stability during periods of low rates, income protection when the market goes down, and income growth when the market goes up.
With guaranteed income investments, monthly cash flow is known in advance and investors have the flexibility to start and stop income when it suits them. This makes budgeting much simpler, especially for retirees and other individuals with a fixed income.
Retirees and fixed-income investors are also protected from a sharp market decline that could harm their portfolio and force them to reduce their standard of living. With guaranteed income investments, there is no possibility that individuals will outlive their assets.
“Indeed, the market’s bigger-than-normal gains are one reason for investors to tap the brakes and avoid getting caught in a wave of euphoria, especially now that the thick part of earnings season is arriving.”
Source: Investor’s Business Daily
While guaranteed income investment products have many potential benefits for investors, they may not be the best choice for everyone. Careful consideration should be given to decide if they are appropriate for you. The Garbacz Group’s financial experts can answer all of your questions, assess your financial affairs and investment objectives, and help you choose the best investment products for your portfolio. Contact the Garbacz Group today to schedule an appointment with a financial advisor.