If you’ve been invested for a while, you already know one thing about the stock market: it goes up… and it crashes.
Over the last few decades we’ve seen major downturns caused by wars, inflation spikes, interest rate changes, and economic turmoil. And if history tells us anything, market volatility isn’t going away.
So many retirees ask me the same question:
“How do I protect my retirement money from market crashes without just sitting in cash?”
Because cash and savings accounts usually don’t grow much, and CDs may not always offer the kind of returns you want.
The good news is there are strategies that can protect your principal while still giving you growth potential. Let me walk you through the options I show my clients every day.
Need help choosing the best annuity for your unique situation? Have questions about getting an annuity? If so, it’s best to speak with an annuity specialist. Watch this short video to see how I can help you do this (at no cost to you!)
Tip: See how much an annuity could pay you using my annuity calculator
Why Market Crashes Are a Bigger Risk in Retirement
When you’re younger, market crashes are frustrating, but you usually have time to recover.
In retirement, the stakes are different.
If you’re withdrawing income during a downturn, you may be selling investments at the worst possible time, which can permanently damage your portfolio.
This is often called sequence of returns risk, and it’s one of the biggest threats to retirement income plans.
That’s why many of my clients want something that offers:
- Protection from market losses
- Some level of growth
- The option for lifetime income
They want stability… without giving up opportunity completely.
👉 Want help comparing safe retirement strategies? Schedule a call and I’ll show you the exact options available.
Option 1: Multi-Year Guaranteed Annuities (MYGAs)
One simple option is something called a MYGA, or Multi-Year Guaranteed Annuity.
Think of it as the annuity world’s version of a CD, but with a few advantages.
For example, many MYGAs currently offer strong guaranteed rates over terms like:
- 5 years
- 7 years
- 10 years
In one example I showed recently, a 7-year MYGA was paying around 6% annually, which means:
- A $1 million investment could generate about $61,000 per year in interest.
- Or it could compound and grow significantly over time.
Another advantage is tax deferral.
If you invest non-IRA money, your interest grows tax-deferred until you withdraw it — unlike a CD where taxes may be owed every year.
Many MYGAs also allow 10% penalty-free withdrawals each year after the first year, giving you some liquidity.
For retirees who want simple, predictable growth, MYGAs are often a great starting point.
👉 Curious what today’s best MYGA rates are? Schedule a call and I’ll show you the current top options.
Option 2: Indexed Annuities for Growth With Protection
Some retirees want more growth potential than a MYGA.
That’s where indexed annuities can come in.
These accounts are linked to a market index like the S&P 500, but with an important difference:
You don’t actually lose money when the market drops.
Here’s how it works.
Insurance companies often use options strategies tied to the index. If the market goes up, your account may receive a portion of that gain. If the market goes down, the options simply expire and your account stays flat instead of losing money.
This means:
- Market up → you participate in gains
- Market down → your principal is protected
For example, one indexed strategy might give you about 55% participation in the S&P 500’s growth, while still protecting you from losses.
Over time, this can produce solid growth — while avoiding the stomach-churning volatility of the stock market.
👉 Want to see real projections based on your situation? Schedule a call and I’ll walk you through them.
Option 3: Lifetime Income Annuities
Many of my clients also want guaranteed lifetime income, not just growth.
That’s where income annuities or annuities with income riders come into play.
For example, someone with $1 million at age 62 planning to start income at 65 could potentially generate around $96,000 per year in guaranteed lifetime income, depending on the product and market conditions.
Some people love this approach because it turns part of their retirement savings into something that behaves like a personal pension.
Even if the account value eventually declines, the income keeps coming for life.
This is why many retirees allocate 40-50% of their portfolio to protected income strategies.
👉 Want to see what your guaranteed retirement income could look like? Schedule a call with me.
Option 4: Combining Growth and Protection
The best retirement plans rarely rely on just one strategy.
Many of my clients combine several tools, such as:
- MYGAs for guaranteed growth
- Indexed annuities for market-linked growth with protection
- Income annuities for lifetime income
This approach creates a retirement portfolio that:
- Reduces market risk
- Provides dependable income
- Still allows growth
And most importantly, it helps you sleep at night during market volatility.
Conclusion
Keeping all your money in cash may feel safe, but over time inflation quietly erodes purchasing power.
On the other hand, leaving everything in the stock market can expose you to painful crashes right when you need your money most.
That’s why many retirees use annuities as a middle ground, combining:
- Protection
- Predictable growth
- Optional lifetime income
Every person’s situation is different, which is why I always walk clients through the actual options available before they make any decisions.