How Index-Linked Annuities Buffer Against Market Shocks Like the Coronacrash

This relatively new type of annuity protects investors from any market losses … up to a certain point. That protection could give you the courage to stay in the ring when others leave the fight.

A seismograph of an earthquake.
(Image credit: Getty Images)

"Risk is an arbitrary concept until you experience it. Talking about being punched in the face is different from...actually being punched in the face." – Carl Richards, Certified Financial Planner™ and creator of the Sketch Guy column

Markets shed 40% back in March as efforts to slow the spread of coronavirus drove the economy to a near halt. Though they bounced back remarkably fast, the economic outlook is uncertain, unemployment is high, and volatility is expected to remain until COVID-19 vaccines are widely distributed and are finally bringing the panemic under control.

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David Stone
Founder and CEO, RetireOne

David Stone is founder and CEO of RetireOne™, the leading, independent platform for fee-based insurance solutions. Prior to RetireOne, David was chief legal counsel for all of Charles Schwab's insurance and risk management initiatives. He is a frequent speaker at industry conferences as well as an active participant on numerous committees dedicated to retirement income product solutions.