Protecting a 401k and other assets during a market downturn is one of the biggest worries of Americans approaching and living in retirement. During this Coronavirus-driven market downturn, things can feel even scarier.
The first step in dealing with this situation is to stay calm, volatility is normal. Panicked responses to this or any other economic emergency are usually detrimental. It is hard to keep calm when it is your own livelihood and the security of your family at risk, but you don’t have to feel alone in maintaining your cool. That’s why experienced, objective financial professionals are here to help you.
For most investors, the money already in 401k plans should stay there — especially if retirement is a few decades away, advisers say. But there are strategies to avoid losing that money — and even making more. Annuities, which are insurance products, are a great way to provide protection of the principal, as well as to generate guaranteed income.
There are many types of annuities, which are created using contracts that clearly spell out their terms, such as time frame for premiums and benefits paid.
Congress passed sweeping retirement legislation called the Secure Act in December, which incorporated numerous rules to help bolster Americans’ future financial security. One provision was to expand access to annuities in 401(k) plans, in an attempt to safeguard Americans from outliving their nest eggs. While this doesn’t impact protecting a 401k, it does impact access. The ability to turn up and down your income is such a powerful planning tool to protect against down markets. (Source: MarketWatch.com)
If you would like to talk with a Ziff Agency professional about protecting a 401k or any other assets, we suggest you contact us directly for a consultation.