THE NEW HOLISTIC RETIREMENT • 35
What’s a Saver to Do? So what’s the right long game thinking when it comes to asset gr owYtohuacnadnp’treoltimecitnioante?the saver’s dilemma, but you can do a btheettteirmjeobtoamddarkeesasidnjgusittminenyotsu.r retirement approach. Now is For many people, one way to a ddress the saver’s dilemma is to incorporate indexing into your retirement strategy. Indexing is a method of crediting interest that can be fcoaushnd in multiple financial instruments, from annuities and val ue l ife insurance t o principal- protected managed portfolios . For this discuss ion, I’ll look at indices tied to the stock market since that is the challenge we’re trying to address. Regardless of the instrument you use, the concept remains the same. For example, with an indexed insura nce prod uct, you have the potential to ear n a por tion of the ma ma rokuentt’ sogf r oi nwt et hr eesat cthh ayte awr ,i lul pb et ocar ecdaipt e. dA icna pa ni sy agmi vaexni mt iumme period. For example, if an index has a cap of 10 percent, the sa vers w ill earn the first 10 percent of the market’s rise. If the market grows 15 percent, the savers would only realize the first 10 percent . markSeot’ws hgryowwothu?ld I recommend you give up the rest of the For the protection offered in the event of market f allout! While indices have a c ap, they also have a floor of pc rreodt ei tcetdi o ni n. Tahni ys i gs iav emni nt ii mm ue mp earmi oodu. nUt souf ai nl l tye, r tehsits y fol uo owr i lils b 0e pt heer cme na rt .k Pe tu it s adnoowt hne, ry owua dy o, ni n’ tdleoxsien gm mo naekye. sI ns u2r0e0, 8e, vwe nh ewn ht eh ne market dropped 37 percent, savers with indexed products in
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