Building a Portfolio with Principal Protection
Building a Portfolio with Principal Protection This week’s article reminds us that pre-retirees can “diversify their portfolio in a way that distributes risk and prepares their retirement savings for growth in a variety of economic environments. It’s even possible to build in some principal protection with the inclusion of Fixed Indexed Annuities (FIAs). FIAs are insurance products that can guarantee income to contract holders over a period of time — even over a lifetime”. With this financial product, “the insurance company absorbs the risk of market downturns, guaranteeing a minimum floor, and protecting contract holders from market losses.” If you