The impact of market downturns
Market declines can take years to recover from—costing Gen Xers not just returns, but also time they may not have. As shown in the chart above, someone with $100,000 invested in the S&P 500 heading into the 2008 market downturn would have had to wait five years just to get back to their original value1.
Peace of mind during uncertain times
So how were Baby Boomers able to protect their nest egg as the Great Recession hit? One successful strategy was to diversify a portion of their retirement savings by putting it into an option with guaranteed growth and principal protection. As show in the chart above, a Multi-Year Guarantee (MYG) Annuity earning a steady 5% annual interest rate would have not only preserved wealth during the same period but also outpaced the S&P 500's average cumulative return until year seven. By locking in a competitive interest rate for a set period, they were able to support their growth goals—and get financial reassurance—regardless of what the market was doing.
Getting certainty from guaranteed growth
History tells us that during uncertain times, stocks can be unpredictable, bond values may fluctuate with interest rates—and even cash alternatives can offer inconsistent yields. But a Multi-Year Guarantee Annuity stands out as a source of financial certainty, because it provides guaranteed interest rate with no market exposure.
Smart planners have looked to MYG Annuities for years to provide growth on a predictable schedule, and they can be more relevant than ever in today's dynamic economic climate. In fact it's a path many have already taken—MYG Annuity sales rose $156.3 billion in 20242. If you're near retirement age or currently retired, an MYG Annuity could be an option that deserves serious consideration.
Digital transformation offers a new way to buy a trusted product
Advances in technology over the past two decades have provided Gen X with resources their Baby Boomers counterparts simply didn't have. Today's online platforms allow them to respond to market conditions in real time and manage their financial strategies more independently. Reflecting this shift, American National Insurance Company now offers Multi-Year Guarantee Annuities online direct to consumers for the first time—making it easier than ever to lock in a competitive rate, choose a guarantee period, and fund with a bank transfer or a Traditional or Roth IRA.
Helping Generation X overcome today's economic challenges
While the challenges facing Generation X may be different from those of their parents, the strategies for overcoming them remain tried and true. If you're looking for a dependable way to grow and protect wealth in order to help you retire comfortably, set your children up for success or take care of aging parents, a Multi-Year Guarantee Annuity from American National Insurance Company can be a great way to give you the financial security you need to ride out any market downturn—and arrive at your financial goals right on time.
