A Mulligan (Do Over) Strategy to Invest For Retirement

I could not resist a little blue about Tiger Woods feeble attempt to rally back into the final round of the Masters golf tournament last month. I thought the term "Mulligan", named after a man, it was re-shaped the game of his shots on the driving course with the hope of a better outcome. Tigers on Sunday without 3 bogies he may have caught the leaders and sent the game into sudden death. How to invest, it would be nice to do themselves, our investment after a bad year,Wiping the slate clear to a promising start in Year 2?

At retirement, a larger and more important objective, so many of us, I have to reach such a solution. It's called the "annual reset", and is a function available in a fixed index annuity (FIA). With a little explanation, I am sure you will agree with me that it is a valuable benefit for your savings grow, is to avoid any loss of principal on the road.

The annual reset feature, you can earn an indexCredits, like interest rates for one year time frame. Each one-year time frame is "reset" with the last value of the index. Before your pension benefits are locked to work let us set an example and follow how the numbers hit the page.

DJIA DJIA Start Date End Change in% Full Scale Credit

2008-09 12,000 13,000 +8% 8% $ 108,000

2009-10 13,000 11,000 -15% 0% $ 108,000

2010-11 11,000 13,000 +18 +8% $ 116,640

Explanation: The Exchange, the Dow Jones Index(DJIA) starts at 12,000 and 13,000 moved in three years. Without the reset function, you would gain credit from about 8% or U.S. $ 8000, after a year. In the second year, the market lost 15% since the market went from 13,000 to 11,000. Your credit card was zero, because you are guaranteed no loss in an FIA are. Carried out since two years is not 11,000, and you start the program at 12,000, under normal conditions, you would still lose money at the beginning of the Year 3rd # But with the "no loss in the year-down functionThey are up 8% after two years. Reset due to the annual, start year now # 3 with 11,000. The market is good, rising 2,000 points to 13,000. The credits are $ 8000, because the cap 8% in each period of one year. Remember that the credit protection cap for your account when determining years. When we took this view for further two years where the market was up 5% in classes 4 a.m. to 5 p.m. to grow your account to $ 128,600 using the reset function. Without it there would still be $ 119,400. This is quitea difference, $ 9200 more money by my count.

In summary, the combination of annual resets and a guarantee of no losses for years on it makes this achievement within a particular index annuity value for investors worried about market risks, in an attempt to keep increasing their investment before retirement. Now maybe I can convince the PGA of them to apply this concept to tournaments - that would indeed be interesting to watch.

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