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As the fourth quarter of 2018 proved once again, the stock market is a volatile place for investors. And if the majority of corporate America’s chief financial officers are correct, 2019 and 2020 are likely to be worse.

According to the latest quarterly Duke University/CFO Global Business Outlook survey, and as reported by Newsweek,

“Corporate finance leaders are preparing for the recession to hit within 18 months, and 82 percent of CFOs…expect the U.S. to slide into a recession by 2020.”

As Wall Street is purging and stock values plummet, now’s the time to make sure your retirement isn’t sitting in the red as the bear market takes its toll. The ABC’s of low-risk money management stand as some of the smartest stock alternatives if you’re looking to safeguard your retirement.

A is for Annuities

Fixed annuities are one of the safest investments out there. There is virtually no risk to the principal balance, earnings are tax-deferred, and they can be adjusted to the exact amount you want to earn at retirement. If you’re looking for slow and steady, annuities are worth a look.

B is for Bonds

Debt is universal–and at the moment abundant in households and government alike. As with everything in finance, if it exists it can be insured, bet against, and leveraged. That is basically what a bond is. It’s a legal note, purchased by an investor, that allows the entity in debt to continue being in debt, so long as they pay back the debt later, and with interest. Investing in government debt offers an average return of about 2%, which is lower than the average 7% return on stocks and significantly lower than the scorching hot returns of mid-2018, but its higher than what the stock market is returning now, and there’s an almost zero chance of default.

C is for CDs

CDs, or certificates of deposit, are basically savings accounts that you can’t draw from for a specified amount of time. Their maturity dates and interest rates are fixed, and they’re backed by the FDIC, making them another smart way to invest cash without risk.

If the current volatility on Wall Street has you second-guessing your retirement strategy, contact us online or give us a call at (480) 270-2802 to discuss your financial future.