How Can Fixed Index Annuities Can Recession Proof Your Retirement Savings?

Today I’ll discuss how Fixed Index Annuities or “FIA” can protect your retirement savings in a recession living in Newport Beach, California and surrounding areas. With no loss of principle you can still earn an average rate of return during those volatile times.

There’s a lot of talk on the news, people’s conversations around Newport Beach, California and from experts about another recession coming in our near future.

Last week I watched a show on how declining Recreational Vehicles (RV) and boat sales are an indicator that a recession is coming. Not to mention the recent inverted yield curve inversion and other factors like some cities here in Orange County have had their lowest sales (6-month period from Jan 2019 to June 30, 2019) since 2008 and home for sale are continuously lowering their prices to sell.

Kind of makes you wonder?

Well maybe not. Who knows?

I think a lot of consumers are wondering and concerned what’ll happen and try to avoid another 2008 recession.

This is why Index Annuities should be considered more to protect consumer’s retirement savings whether for the short or long term. Can you afford another 2008 39% loss of your assets? Nobody can here living in Newport Beach, California.

Index Annuities and the Recession

Here’s the deal with FIAs:

 You will protect your retirement funds in a volatile market.

 A volatile market can lead to a recession.

 You will have the opportunity to make an average rate of return, but that’s it.

 You will lock in your gains that will not decrease. Once you earn it, it’s yours.

 Your account’s value will not fluctuate.

 You will have a choice between short term and long term solutions.

How Index Annuities Work in a Recession

If the index strategy that you choose provides growth then your annuity goes up in value.

If the index strategy takes a dive, your annuity’s value stays exactly the same as before – you never, ever lose your money! (note: If you have any annuity fees, that’ll obviously decrease the value.)

It’s that simple.

What’s the Downside to Fixed Index Annuities?

You only get a portion of any upside potential in an index annuity.

You can be stuck in a long term contract if you’re not careful.

There’s limited liquidity each year but not all annuities have the same surrender periods.

Making the Most of a Recession

Orange County residents putting money away for retirement are all at a different stage in their life so there’s not one particular solution for every person.

If you want to protect your retirement savings but want the ability to go back into a market of choice as soon as possible, look at a an annuity with a short surrender period.

Fixed index annuities have contracts that can be short time-frames, like 3 years in length. Not bad.

If you wisely decide to protect your retirement savings, but also want the ability to gradually move back into the market of your choice, then look for an annuity with accumulating penalty-free withdrawals.

If you’re just tired of the roller coaster ride of the market, look for a company with a standard index annuity contract which is typically 10 years.

You could also look at multi-year guaranteed annuity (MYGA).


You can’t lose money due to market volatility with a fixed index annuity.

Since you can’t lose money, this makes a FIA “recession-proof.”

There are different ways to utilize the annuity to bridge the gap between market conditions such as short term annuities and other liquid annuities.

You won’t have as much upside (gains) as being in the market, but you won’t lose money (loss) like being in the market.

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