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 The three safest places to put our money: No 1. Fixed annuities

The three safest places to put our money: No 1. Fixed annuities

Back in the Great Depression, the American public completely lost faith in our banks and financial institutions. Panicked prevailed, virtually overnight, as mobs flocked to their local branches attempting to take out their money.

Of course, banks weren’t FDIC insured back then, and there wasn’t enough money to be doled out. Markets crashed, farms and properties foreclosed, and businesses went under. Most people lost their life savings and had to start over, if they could.

Thankfully, we’ve come a long way from those treacherous and uncertain times, and even when we hit the next Great Recession (and we will) or even Depression, there will be plenty of checks and balances to ensure our money will remain ours. Right?

Not necessarily, as we’re already seeing pensions going bankrupt and Social Security is definitely on its final throes. The sad reality is that the money and income streams you’re counting on – especially in retirement – probably won’t be there, or eroded to the point of not covering even basic living expenses.

So, safety is paramount when choosing how and where to invest. But instead of burying cash in tin cans in the back yard or hiding it in the walls (as people often did during the Depression!), we have far better options.

In fact, to ensure safety against market turbulence and even a financial collapse, we need to park our money in three places. Think of them as three separate vaults, and only you have the combination. 

They are: 

            1.         Fixed annuity 


            2.         Fixed index annuity 


            3.         Perm life insurance 


Today, I’ll cover the first of those: Fixed annuities.

1. Fixed Annuity 

A fixed annuity allows us to keep some of our money completely safe in one of our vaults. No matter what, we’ll still get a guaranteed rate of return, but the rates we’ll enjoy are three to five times higher than the rates banks are offering. (Right now, banks are only offering 2.76 percent on a 5-year CD rate!) 

Instead, we can simply go to one of the A-rated insurance companies that offer 4.15 percent guaranteed on our money for the next five years! 

There’s another important characteristic of a fixed annuity that differentiates it from a simple Certificate of Deposit, for instance. With a CD, you have to pay taxes on the interest you receive. But with a fixed annuity, the interest grows tax-deferred. Therefore, it grows faster, and you only pay taxes when you cash out and put the money in your pocket. 

That way, your money will continue to grow with no worries every time the market goes up or down (especially down!) 

How important is that safety and stability? Let’s put it in perspective another way. In 2015, seventy percent of investors lost money in the equities market. 

Can you believe that? Seventy percent! 

And that’s during a year of stability and growth – not during a market correction or collapse! 

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Contact me if you’d like more help keeping your money safe, and say tuned for #2 and #3 on this list!