A little-known vehicle outside of banks could double… triple… or even quadruple your life savings - GoTrade4me

A little-known vehicle outside of banks could double… triple… or even quadruple your life savings if you know where to find it right now. And it has almost nothing to do with what you’re hearing today about stocks, bonds, or cryptos. Yes, you read it right!

The vehicle is a Fixed Index Annuity (FIA). It’s a contract between you and an insurance company that allows you to grow your money with potential gains based on an external index like the S&P 500, without the risk of losing your principal. With an FIA, you can put money into a contract and the insurance company will guarantee a return, with the potential for additional growth based on market performance. The gains are calculated based on a predetermined formula, so you know exactly how much you will receive at the end of the contract.

The benefits of an FIA can include:

• Guaranteed returns – you know that your money is safe and secure

• No market risk – you won’t lose your principal if the markets crash

• Tax-deferred growth – you won’t have to pay taxes on the gains until you withdraw them

• Flexibility – you can choose when you want to withdraw your money or take out a loan against the contract.

For those looking to diversify their investments and secure their money, an FIA can provide a great opportunity to grow their savings while taking on minimal risk.

For example, let’s say you invest $100,000 in an FIA. The insurance company guarantees you a return of 3%, plus any additional gains based on the performance of an external index like the S&P 500. If the index experiences an 8% return over the course of the contract, you will receive an 11% return on your investment ($11,000). This money is tax-deferred until you withdraw it, so you can invest more money or wait until you need the money to benefit from the tax-deferred growth. In addition, you won’t lose your principal if the markets crash, and you can access your money at any time without penalty.

Are there any scenarios where you can lose your money invested in FIA?

Yes, there are a few scenarios where you could potentially lose money by investing in an FIA. First, if you surrender the contract early, you will be subject to surrender fees and penalties, which could reduce your returns. Second, if the insurance company goes bankrupt, you could lose some or all of your investment. Finally, if the index you’ve chosen experiences a sustained downturn, you could lose some of your gains.

How can you invest in FIAs so that you never lose your principal amount?

The best way to never lose your principal amount when investing in FIAs is to make sure you are investing with a highly rated insurance company. Additionally, you should also make sure that the FIA has a guaranteed minimum return, so that you will at least get your money back in the event that the index you’ve chosen experiences a sustained downturn. Finally, be sure to understand the surrender fees and penalties associated with the contract before investing, so that you are fully aware of the potential risks.

Who’s advise should you listen to before investing into FIAs?

Before investing in an FIA, you should always consult a financial professional, such as a Certified Financial Planner (CFP) or a Registered Investment Advisor (RIA). A financial professional can help you understand the FIA product, the risks associated with it, and how it fits into your overall investment and retirement plans. They can also help you evaluate the various options available and recommend the best option for you.

Can you name some renowned CFPs and RIAs?

Some renowned CFPs and RIAs include:

• Suze Orman

• Ric Edelman

• Ron Blue

• Jonathan Clements

• Harold Evensky

• Bill Bengen

• P.J. DiNuzzo

• Mary Beth Franklin

• Shannah Compton Game

• Jean Chatzky

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