Believe it or not, it’s been 10 years since the Great Recession of 2008. That means we’ve had a whole decade to correct our financial missteps of the past, right? Unfortunately, there are some alarming stats that say otherwise. When the markets are up, it’s easy to forget about the hardships we faced a few years back. But, the reality is that markets are unpredictable and no one knows when the next big drop could happen. Those with unprotected income sources who are in or nearing retirement are especially at risk in the case of a crash because they have less time to make up for losses. If we’re to create a future of financial freedom, it’s important to remember the lessons from our past and make protecting and growing our retirement income a priority.

To learn more about ways to help recession-proof your retirement income, read 10 Years Since The Financial Crisis: These Four Lessons Are True Now and Forever by financial expert and Studio contributor, Jean Chatzky.

1 Vikas Bajaj and Michael Grynbaum, The New York Times, “For stocks, worst single-day drop in two decades,” September 29, 2008.

2 Federal Reserve, "Report on the Economic Well-being US Households in 2017, May 2018.

3 Andrew DePietro, Go Banking Rates, "Another Recession Would Ruin Two-Thirds of Americans," June 26, 2017.

4 Maurie Backman, The Motley Fool, "39 Million Americans Can't Afford Their Homes," June 25, 2017.

5 Cezary Podkul,The Wall Street Journal, "10 Years After the Crisis," March 27, 2018.

6 Greenwald & Associates/ CANNEX, "Fourth Annual 2018 Guaranteed Lifetime Income Study" 2018.


What is an annuity?

Annuities are long-term, tax-deferred investments designed for retirement. Variable annuities involve risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½. Optional benefits are available for an extra charge in addition to the ongoing fees and expenses of the variable annuity.

Annuities are not for everyone. And, it’s important to remember that these products are meant to be long-term investments designed for retirement, so there are restrictions in place to discourage you from withdrawing all of your money at once or taking withdrawals before age 591/2. However, most annuities do allow for exceptions based on specific circumstances such as a terminal illness or other emergencies.

*Guarantees are backed by the claims-paying ability of the issuing insurance company.

+Optional benefits are available for an extra charge in addition to the ongoing fees and expenses of the variable annuity.

Investing involves risk, including possible loss of principal.

The opinions and forecasts expressed are those of the author and individuals quoted and should not be construed as a recommendation or as complete.


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