The world financial system is in crisis, with the United States and Europe in recession and Europe on the verge of collapse. Investors are losing money, while employees are losing their 401ks. It is rare that companies offer any type of pension plan. The interest rates offered by banks are almost non-existent. Inflation and taxes can erode any potential gains.
Jan Hatzius, Chief Economist Global Investment Research at Goldman Sachs, stated that “our outlook for the global economic in 2012 and 2013 are slower growth than the previous couple of years.”
What does this mean? What should a person do? You can put your money where you want to not lose the principle. You don’t have to worry about your money running out.
Many baby boomers worry about their retirement. Many baby boomers are looking for safer alternatives. These alternatives are being used by younger people to protect their future income.
There are many safe investments that can protect principal loss and interest loss. You can also get a tax-free retirement income that will not be subject to taxes. None of the products I’ll be discussing will jeopardize any principal investment.
Keep an open mind as I share these products with you. Keep in mind that the world has changed. Some of these products you will mention may already be familiar. Many of these products are different from the ones that were offered to grandparents, grandparents, or parents many years ago.
IUL is Index Universal Life. It is indeed life insurance.
Index Universal Life insurance is a type of life insurance that provides death benefits and long-term cash accumulation. An Index Universal Life policy is different from other permanent life insurance products because the interest is credited differently. It also allows you to earn interest linked to movements in select stock markets indexes. This means that your principal investment is not affected and your interest becomes your principal. Contributions are tax-favored, interest is tax favored; accumulations are tax-favored; withdrawals and transfers are tax-favored.
Annuities is the second product. If you have ever looked at Annuities in the past and thought it wasn’t for you, it’s time to take another look.
Annuities are long-term investments that guarantee retirement income. Annuities are tax-deferred investments that accumulate and are placed in carefully managed portfolios. Annuities offer new living benefits and a wider range of investment strategies. They also have favorable tax treatment.
Market Linked Certificates of Deposit is the third product. (MLCD). This CD is backed by FDIC.
Market-linked Certificates of Deposits are similar to traditional CDs, but they don’t have a fixed rate of interest. Market linked Certificates are linked to indexes such as the Dow Jones Industrial Average. They can also link to commodity prices and currencies. The interest earned must be taxed
These products should be considered and investigated to determine if they are worth adding to your portfolio. It’s important to not only keep your wealth secure and growing, but also to avoid any economic turmoil, whether in the US, abroad, or elsewhere. Diversifying your investment portfolio is a smart move to protect your financial future and save your money.
