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How would you define “risk?”

Why is asset allocation so critical?

Worried you’ll outlive your money?

Are your emotions affecting your investment decisions?

What have you always wanted to do?

How much risk should you take?

Are your documents in order?

What would you do if you had more free time?

Making the same investment mistakes over and over?

How much is enough?

Having trouble deciding when to buy or sell investments?

Are you invested for retirement?

Is your asset mix right for you?

If you had more money what would you do?

How do you get a fair settlement?

Do you have to give up your pension?

Will your family be OK?

Which of your current responsibilities would you like to give up?

What do you value most in life?

When is the best time to sell an investment?

Having trouble setting goals?

Do you know where your money goes?

Will your estate be devastated by taxes?

When are you happiest?

Are you fearful of making an expensive mistake on your taxes?

Are you prepared for disaster?

Do losses keep you awake at night?

Do you have a fear of being audited?

Going through a difficult transition in your life?

Unsure about your rate of return?

Do you have a strategy?

Have your investment goals changed over time?

Are you ready for retirement?

What keeps you up at night?

Should you keep the house?

How can you minimize your taxes?

Are you missing the big picture?

Tempted to make investments that aren’t part of your “plan?”

What does retirement mean to you?

September 04, 2010

Downside Protection Has Its Downsides

Money has hemorrhaged out of U.S. stock funds for 18 weeks in a row, with an estimated $15 billion flowing out in August alone. Much of that is being soaked up by a form of insurance sold as a safer alternative to stocks.

Fixed-indexed insurance products, commonly called “equity-indexed annuities,” offer the promise of protection on the downside combined with a guaranteed minimum upside. They racked up a record $8.2 billion in new sales in the second quarter and hit an all-time high of $168 billion in total assets as of June 30, according to Limra and Beacon Research. But while you can avoid the downside of the stock market with these annuities, you expose yourself to another set of downsides.

Link: http://online.wsj.com/article/SB10001424052748703431604575468212487332270.html

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