Broker Check
Why Income Protection Is Crucial During Times Of Market Volatility

Why Income Protection Is Crucial During Times Of Market Volatility

March 31, 2020

Here's the hard truth: We can’t always see market volatility before it occurs.  

On September 10, 2001, we didn’t know the World Trade Center in New York City would be attacked the following day.  

In November 2007, we couldn’t see the underlying financial crisis that led to the Great Recession which would begin the following month, December of that same year and last through June 2009. 

In December of 2019, at just the end of last year, the thought of the COVID-19 virus developing in China and spreading across the world wasn’t on our minds. 

Each of these events has caused significant stock market volatility.

Market volatility often comes at us with little, or no, warning.  When planning for retirement, heading into retirement, or living in retirement we can’t afford to have such stock market volatility take away the retirement income we’ve worked so hard to build over the years. 

We can’t afford to have the stock market alone tell us we must wait longer to retire, possibly not retire, or return to work out of retirement.

That's why income protection is so crucial to a retirement plan.

Similar to having fire insurance on your home, Income Protection is insurance for your retirement income.  If your home burns down, the insurance company rebuilds your home.  With Income Protection, if your retirement savings deteriorates due to stock market volatility, the insurance company continues your retirement income for the rest of your life.

Income Protection protects against the stock market telling us we must work longer than planned.  It protects against the stock marketing telling us we cannot retire.  Income protection protects us from having to go back to work during retirement due to severe market volatility.

As a client of FRG, we take strides to include Income Protection into your retirement plan.  It's one of many ways we try to help make planning for retirement easier.

Do you have any questions about how this applies to you, or do you have any friends of family members that you feel would benefit from our services especially during times of volatility?  If so, please give us a call at 303-996-9898.  We'd be happy to assist.