“consider rolling over those funds into a life annuity...protect retirement savings from market volatility and provide the potential for growth and guaranteed income.” - Tomas Avalos

The year 2022 has brought with it record losses for many 401(k) account holders. According to a report by CNBC, the average 401(k) balance fell by nearly 10% in the first quarter of 2022, marking the largest quarterly drop since 2008. These losses can be devastating for individuals who have been saving for retirement for years.

However, there are options available for those looking to protect their retirement savings. Life insurance brokers can provide guidance and solutions to help prevent losses and ensure a financially secure retirement. Two options to consider are Indexed Universal Life (IUL) policies and life annuities.

IUL policies are a type of permanent life insurance that offers a tax-free death benefit as well as the potential for cash value accumulation. These policies are tied to a market index, such as the S&P 500, allowing for potential growth while also providing downside protection. In fact, a study by LIMRA found that IUL policies have experienced steady growth in recent years, with premiums increasing by 23% in 2021 alone.

Life annuities, on the other hand, provide a guaranteed stream of income for life. According to a study by the Insured Retirement Institute, 69% of retirees said that guaranteed lifetime income is the most important feature of an annuity. This can provide peace of mind and security, even in times of economic uncertainty.

For those with old 401(k) accounts, it may be beneficial to consider rolling over those funds into an IUL policy or life annuity. This can protect retirement savings from market volatility and provide the potential for growth and guaranteed income.

It's important to work with a reputable and experienced life insurance broker when considering these options. According to a study by J.D. Power, 68% of life insurance customers say that a knowledgeable and professional agent is the most important factor when choosing a provider.

In conclusion, the record losses in 401(k) accounts in 2022 have highlighted the importance of protecting retirement savings. Life insurance brokers can provide solutions, such as IUL policies and life annuities, to help prevent losses and ensure a financially secure retirement. Those with old 401(k) accounts may benefit from rolling over their funds into these options. Working with a knowledgeable and professional life insurance broker can provide valuable guidance and peace of mind.