Dick Van Dyke of DVD Financial claims that annuity plans still provide an excellent safety net for individuals dealing with a shifting financial climate.
Many individuals are worried about the impending cuts that will be discussed during the ongoing congressional sequester. The sequester was originally put into place as part of the Budget Control Act of 2011 to serve as an incentive for the Joint Select Committee on Deficit Reduction to come to a deal regarding the debt ceiling. However, no such deal was passed, and therefore the Sequester took affect Friday March 1st.
During negotiations on the US budget, debt ceiling or potential Government shutdowns, there is always an affect on the market. Economist's predictions and general political discourse can cause panic in the population, creating big fluctuations in the marketplace. This can directly impact people's retirement plans and investments.
Numerous individuals are now seeking out alternative or supplemental financial products to safeguard their plans for retirement. Dick Van Dyke, a retirement educator and nationally recognized financial services provider with more than thirty years of successful business behind him, suggests that annuity options are a strong play for many individuals, especially during tough economic times.
"A good portfolio is well-balanced," says Van Dyke. "I find that when we're analyzing (financial) portfolios, that the annuity becomes the foundational portion. It's usually slanted toward the future income need, although sometimes it's an immediate income need or secure growth. That is where the annuity seems to be well-suited."
Van Dyke's partner, Eric Judy went on to describe why an annuity works in a volatile economic climate."It's a stair-step approach. Fixed annuities lock in your gains. If you lock in a gain annually, you do so regardless of whether or not the market has gone up or down."
Fluctuations in the market may make you feel less than secure when planning for your retirement. Many economists predict that the economy will remain flat or grow at a less than a stellar rate Seeking out financial plans unrelated to pensions, 401(k)s, and Social Security may put your mind at ease.
Van Dyke clarifies further, "It's possible in a flat or down market to have increases in an index or hybrid annuity. It's a way to have safety, have some growth, and be able to function in a market even if it takes a drastic turn for the worse."