We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,244)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (422)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (804)
  • Wink's Articles (354)
  • Wink's Inside Story (275)
  • Wink's Press Releases (123)
  • Blog Archives

  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • Bull Market Mystery

    April 4, 2012 by W. Andrew Unkefer

    Posted By: Editor On 4/4/2012 11:52:00 AM

    By W. Andrew Unkefer
    AnnuityNews

    Today’s economic environment is an excellent example of the influence that market makers have on people’s decisions. Countless American’s are being lured by the potential of higher returns but not always being made fully aware of the risks associated with their decisions.

    It is interesting how these various organizations and individuals like to measure market performance as if each measurement period stands on its own and is not influenced in any way by the past or by the future. For example, you might hear something like, “The S&P 500 is celebrating a three-year bull market!” You will likely also see many mutual funds touting their returns over the last three years.

    Is the three-year bull market real?

    Here are the facts. The S&P 500 bottomed out most recently on March 2, 2009, closing at 683.38. Approximately three years later (as of March 26, 2012) the S&P closed at 1,416.51. That equals an attractive annual growth rate of 27.50 percent. Sounds great doesn’t it? But is that the whole story? Are these gains locked in and protected against loss?

    What about long-term performance?

    A quick examination of the past reveals a completely different story. If you go back over the last 12 years, investors saw an incredibly different picture. The fact is that on March 20, 2000, the S&P 500 index closed at 1527.46. During that time period, the market has experienced high levels of volatility. When you use March 20, 2000, as an original starting point, you will find that the S&P 500 index has spent nearly all of its time below the March 20, 2000 value of 1527.46. Just small handful of days exceeded this value. As of March 26, 2012, the S&P 500 is still 7.26 percent below its year 2000 peak.

    Over the last 12 years, the market has been like a roller coaster – where you begin the ride right at the top. As you ride, the coaster takes you through twists, turns, dips and peaks, but it has never really gotten you back to where you started.

    The truth is that the S&P has spent about 12 years below its March 20, 2000 value. Investors needing periodic or systematic access to their money during that period would have done so at a loss. The three-year bull market is actually a phantom.

    More than 80 percent of all qualified money is in the market. IRA owners age 70½ and older are required to make minimum distributions, according to the US Census Bureau. That means that all IRA owners who were in the market watched their retirement account dwindle through market losses and through required distributions. This depletes their retirement account even faster.

    Are you wondering how much the market needs to grow to equal an attractive return over the last 12 years? Here’s a hypothetical study: let’s give the S&P 500 three more years to grow and then evaluate if the returns can be reasonably achieved. By adding three years to the past 12, we can get a 15-year hypothetical performance.

    Over the   next 36 months…

    If the   market increases by:

    The   effective 12-year rate of return would be:

    30%

    1.26%

    40%

    1.75%

    50%

    2.22%

    60%

    2.67%

    70%

    3.08%

    80%

    3.48%

    90%

    3.85%

    100%

    4.21%

    The bottom line is that the next 36 months need to be absolutely phenomenal just to provide investors with mildly competitive returns that they could have captured in a variety of risk free opportunities. Have investors been fooled again? We believe so.

    Diversification?

    Investment promoters typically emphasize diversification as the answer to harnessing market risk. The S&P 500 is widely diversified. These 500 companies comprise more than 70 percent of the market’s capitalization, according to Standard & Poor’s. And, according to analyst firm Morningstar, less than 25 percent of mutual funds even compete with returns of the S&P 500. Diversification reduces the risk of one stock tanking, but it does not protect against broad market losses that affect every investor.

    A Fixed Annuity may be the answer.

    Savers would have far out performed investors over the last 12 years by simply playing it safe. Today’s fixed annuities and fixed indexed annuities allow people to protect their principal, protect their past interest credits and even take systematic income on a monthly basis – with no fear of ever running out of their money!

    W. Andrew Unkefer is the president and CEO of Unkefer & Associates, Inc., a national annuity and life insurance marketing firm. The company’s goal is to be the No.1 resource for independent agents in their life and annuity business. He may be reached at 800.523.5851 or andy@unkefermail.com.

    © Entire contents copyright 2012 by InsuranceNewsNet.com, Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

    Originally Posted at Annuity News on April 4, 2012 by W. Andrew Unkefer.

    Categories: Industry Articles
    currency