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Avoiding Market Vertigo: Warns Retirement Investors Against Heavy Rotation Into Equities

Published: April 16, 2013 Categories: Fixed Annuities, Indexed Annuities, Investing, Press Releases

MEDFORD, Ore., April 16, 2013 /PRNewswire/ — Some market analysts are predicting a so-called “Great Rotation” out of bonds and into stocks, while others believe that continual market uncertainty will lead to most investors staying put. In either case, the endgame may be less than ideal for those who have diligently and wisely saved for retirement. The market volatility of the last five years has certainly complicated matters, but there are solutions that can restore peace of mind as retirement approaches. One of the most promising solutions is fixed and immediate income annuities, which pay a contractually guaranteed interest rate or income amount each year., a leading provider of products and information in the annuities market, warns retirees that now is not the time for grand shifts in investment strategies. Rotating into stocks is a risky proposition for two reasons. On the one hand, the market has already experienced a relatively long bull run. Any investors who weren’t already on board the roller coaster have missed out on the high returns of the last three or so years. On the other hand, a “correction,” while impossible to predict, is at some point inevitable. Diving headfirst into the market now might be the worst possible timing.

The traditionally stoic and reliable bond market presents its own set of uncertainties. Should current bond interest rates rise, the value of currently held bonds will decline. Interest rates can go up in response to a decline in demand for bonds or a change in Federal Reserve policy, or both. A fall in bond prices is almost inevitable; it’s simply a matter of when and how much.

Despite these potentially troubling scenarios, the future is not all doom and gloom for investors already in or rapidly approaching retirement. Ken Nuss, founder and CEO of, explains how fixed annuities can provide a buffer against the unpredictability of stock and bond markets.

Nuss provides the following advice for retirees and near-retirees:

  • Resist the urge to move your entire portfolio from bonds to stocks.

The market is simply unpredictable, has less room to grow than it did three years ago and is more likely headed to an inevitable correction at some point in the near future. Consider the retiree that experiences a 30% market value correction to his investment portfolio; he would need to see growth of 43% just to recover that lost ground, and retired investors simply don’t have the luxury of unlimited time to wait on a recovery. The last several years heading up to retirement are also not the time to try and make aggressive moves.

  • Fixed index annuities offer a better all-around solution than stocks.

Combining strong earnings potential with no risk to principal, fixed index annuities are immune to stock market declines. These annuities also guarantee a minimum interest rate. For retirement investors interested in making up ground over the last furlong, fixed index annuities are an option worthy of serious consideration.

  • Traditional fixed or multi-year guarantee annuities are a no-risk alternative to bonds.

Because they’re guaranteed by the full faith and credit of the issuing insurance company, the insurance company takes on all of the market risk. All the retiree has to do is watch their money grow and cash the checks.

Retirement investors can learn more about the various fixed annuity products available today at


Founded in 1999 by veteran financial and retirement planner Ken Nuss, is the leading online provider of fixed-rate, equity-indexed, and immediate income annuities. Consumers planning for retirement have come to rely on for individualized, expert recommendations and guaranteed, high-value annuity products that have been thoroughly screened by Nuss and his staff. The company’s client-centered approach allows consumers to find the best mix of annuity products for their unique needs from the hundreds of annuities available through There are no fees for the service.

Nuss is an active member of the National Association of Insurance and Financial Advisors (NAIFA), the National Association for Fixed Annuities (NAFA), and the National Ethics Association (NEA). He holds an Oregon insurance consulting license, along with an individual producer license in all 50 states and the District of Columbia.

Learn more at or call 800-239-0356.

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