You Insure Your Home, Your Car, and Your Life — But What About Your Retirement?
Think about it: you insure your home against fire damage (even though the odds of a major fire over 30 years are less than 1%). You insure your car against accidents. You carry life insurance to protect your family.
Yet many people leave their retirement savings completely unprotected — even though the stock market has historically experienced declines of 20% or more approximately once every 3 to 4 years.
The Three Biggest Risks to Your Retirement
1. Longevity Risk: Living Longer Than Your Money
For a couple both age 65, there is a 50% chance that at least one spouse will live to age 93. That is potentially 28+ years of retirement to fund. Without guaranteed income, you risk running out of money in your 80s or 90s — precisely when you are least able to go back to work.
2. Market Volatility: The Sequence of Returns Problem
A major market downturn early in retirement can permanently damage your portfolio. If you are withdrawing 4% per year and the market drops 30% in your first year of retirement, your portfolio may never fully recover — even if the market bounces back. This is called sequence of returns risk, and it is one of the most dangerous threats to a traditional withdrawal strategy.
3. Inflation: The Silent Erosion
Expenses of $60,000 today could become over $116,000 in 30 years if historical inflation patterns continue. Healthcare costs tend to rise even faster than general inflation, and Medicare premiums continue to climb.
How Fixed Indexed Annuities Provide Protection
A fixed indexed annuity is designed to address all three risks simultaneously:
- Longevity protection: Guaranteed lifetime income means you can never outlive your money, whether you live to 85 or 105.
- Market protection: A 0% floor means your account value never decreases due to negative market performance. You participate in some upside, but your principal is protected.
- Inflation hedge: Growing income features and index-linked crediting strategies are designed to help your income keep pace with rising costs over time.
Closing the Protection Gap
Johnny Hong helps Orange County families close their retirement protection gap by creating personalized income strategies using fixed indexed annuities from top-rated carriers like AIG, Prudential, and Allianz.
Schedule a free consultation to learn how much guaranteed income you could create.
Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are not FDIC insured, not bank guaranteed, and may lose value.
Johnny Hong has helped hundreds of Orange County families retire with confidence. A focused 30-minute conversation can help you see your next best move clearly.