I've heard of friends who retired and ended up losing their retirement. Is there insurance to cover that if something similar happens?

Asked by Katie Greene

3 Answers

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Diversify to reduce downside risk. If all your retirement eggs are in a company 401k or IRA, that can sometimes be trouble. Also a stock market downturn can harm your retirement. Alternative places to park retirement funds are in indexed annuities (not variable), life insurance policies, and gold and silver. All of these alternatives can be tax sheltered in an IRA and there are pros and cons to each. | 08.26.15 @ 19:09
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 08:20
Answered by Roger R Bell, II, Financial Adviser in Pulaski, VA
Katie, a great question. Over the past 40 years I have witnessed the economy inflict terrible wrongs upon people, which affected their hard-earned savings, retirement funds, homes, etc. It is indeed unfortunate for anyone to lose their retirement funds whether it is due to losses in the stock market from inappropriate investments, an employer bankruptcy affecting their pension plan, a lack of health insurance, etc. I note that you did not indicate how your friend's retirement funds were lost. Thus, at this point, I would presume that your friend's retirement funds were most likely invested in the stock markets via their employer's profit sharing plan or in their own individual retirement account. There are cost-effective and legitimate products in which you can invest your funds that provide limited types of insurance. These products ensure that your funds are protected to the extent you receive a portion or all of the monies you have invested. Because these products vary widely and can be very costly to you in terms of hidden fees, I recommend you retain the services of an experienced, independent financial planner who charges an upfront hourly fee and to whom you can address this question to more specifically.
Good luck! Roger Bell
| 08.27.15 @ 02:56
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 08:20
H
Answered by Homer
I would say watch out for those who want a piece of your pie. I realize that no one works for free but the amount of people that want to manipulate your money and possibly lose it all for you is astounding. Several people I know are now working in retirement because their "adviser" churned thru their money so quickly that their holdings are now too small to keep them in retirement.

So as I near retirement I am getting bombarded with emails/postcards/letters/phone calls from every Tom/Dick/Harry wanting to "help" me with my money. Heck I could eat dinner out for months with all the invitations I'm getting now.

Everyone wants to sell me something! Annuities, Life Insurance, etc. Don't believe them.
Nuts to all of them! | 09.01.15 @ 20:43
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 08:20
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