How to Protect Your IRA from a Stock Market Crash

Shawn Plummer

CEO, The Annuity Expert

A stock market crash can be a scary thing. Suddenly, the value of your investments can plummet, and you may not know what to do. If you have an IRA, it’s essential to protect it from such a crash. This guide will discuss some steps you can take to help safeguard your retirement savings.

How to Protect Your IRA from a Stock Market Crash In 2022

First, it’s important to remember that an IRA is a long-term investment. This means you shouldn’t panic if the stock market drops. While it’s true that your account balance may go down in the short term, it will likely rebound over time.

Second, you should consider diversifying your investments. This means putting your money into different assets, such as stocks, bonds, and cash. Diversifying will make you less likely to lose everything if the stock market crashes.

Third, you should consider investing in a target-date fund. These funds automatically rebalance themselves as you get closer to retirement. This can help to reduce your risk, as well as provide you with peace of mind.

Fourth, you should regularly monitor your account balance. This way, you’ll be able to see how your investments are performing and make changes if necessary.

Finally, remember that a stock market crash is not the world’s end. But, if you take the proper steps, you can protect your IRA and ensure it continues growing.

If you need help choosing the right stocks, we recommend the following:

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The Motley Fool

How We Protect Your IRA from a Stock Market Crash

For IRAs, we suggest considering a fixed index annuity which allows you to get market exposure without the risk of loss.

We also suggest you start a non-qualified fixed index annuity with no contribution limit and can offer tax-deferred growth. Then, only the interest will be taxed when you start to take distributions in retirement.

You can also contribute to a Roth IRA fixed index annuity with the same benefit of tax-deferred growth, but you will never pay taxes on the gains since it is a Roth IRA. You also are protected from a stock market crash.

Next Steps

So, whether you’re looking for a new way to invest your money or want to protect what you’ve already saved, we suggest considering a fixed index annuity. They offer excellent benefits and peace of mind regarding retirement planning. Contact us today for a quote and see how much easier life can be with one of these plans.

We look forward to hearing from you soon!

How To Protect Your Ira From A Stock Market Crash

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Frequently Asked Questions

Why is my IRA losing money in 2022?

There could be several reasons why your IRA is losing money in 2022. It could be due to a stock market crash, or it could simply be that the investments you’ve chosen are underperforming. If you’re concerned about your IRA, talk to a financial advisor to get more information. They can help you understand what’s going on and offer advice on how to protect your savings.

What should I do if my IRA is losing money?

Diversify your investments. Rebalance your portfolio. Don’t panic. Consider a fixed indexed annuity to protect your IRA from stock market crashes.

Does an individual accumulation ira lose money when the market changes?

Yes, an IRA can lose money when the stock market changes. However, it’s important to remember that these changes are usually temporary. The market will eventually recover, so it’s important not to sell your investments in a panic. Instead, consider diversifying your portfolio or investing in a fixed index annuity.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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