Fixed Index Annuity

Financial Speacialist & Consultant

(408)888.0534

Private pension funds (Fix Index Annuities) are investment products sponsored by top financial companies that are highly rated (A+, A-, A) by global rating agencies such as AM Best, S&P Global, Fitch, and Moody's. Similar to how banks have FDIC backing, investments in private pensions are guaranteed by NAIC, providing an additional layer of protection as financial companies insure each other.

When comparing private pensions and stocks, stock investments carry a higher risk of loss during market declines, as they are not sponsored by any organization. The 2008 financial crisis serves as a clear example, with the Dow Jones dropping 54%, the S&P 500 dropping 57%, and the NASDAQ dropping 56%. It took at least six years for the market to recover from these losses. The question we should ask ourselves is, "How many times can we afford to wait for six years?"

The lesson learned from the 2008 financial crisis is that participating in private pensions is safer because both the principal and interest are guaranteed not to be lost by financial institutions such as market declines. With rising inflation, ongoing conflicts, and increasing unemployment, it is crucial to protect your family's finances, and retirement with a safe investment fund.

SP Finance Solutions is a reputable finance industry broker providing valuable insight to clients in all 50 states.