Dubious retirement plans can prove fatal

Investors, especially retirees, left shell-shocked by the coronavirus-hit financial markets will need to scrutinise sales pitches for policies such as fixed-indexed annuities, and not jump to make purchases in the middle of a major downturn, when the
Investors, especially retirees, left shell-shocked by the coronavirus-hit financial markets will need to scrutinise sales pitches for policies such as fixed-indexed annuities, and not jump to make purchases in the middle of a major downturn, when they may be most vulnerable. PHOTO: REUTERS
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Shortly after the stock market began its descent, Mr Rob Phelan, a high school maths teacher in Maryland, received an e-mail sales pitch: "The Coronavirus may be Fatal - to Your Retirement Savings!"

The note, punctuated with exclamation points, offered a seemingly magical solution, something called a fixed indexed annuity. Its "value can only go up!" it said.

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A version of this article appeared in the print edition of The Sunday Times on March 22, 2020, with the headline Dubious retirement plans can prove fatal. Subscribe