Roubini has a bad feeling on this one, all right?

Roubini has a bad feeling on this one, all right?

March 3, 2020 – Remember the line in Platoon when Sgt. O’Neill (John C. McGinley) expresses his concerns about a pending military conflict with Staff Sgt. Barnes (Tom Berenger)?

“Bob, I got a bad feeling on this one, all right? I mean, I got a bad feeling. I don’t think I’m gonna make it outta here! D’ya understand what I’m sayin’ to you?”

Sgt. Red O’Neill

While the prospects of seeing one’s entire life savings evaporate due to fallout from a global pandemic pale in comparison to the psychological trauma experienced by the brave men and women who experience the harsh realities of war, this line came to mind when I read yesterday’s MarketWatch article quoting economist Nouriel Roubini who sees bad things ahead for the market.

“I expect global equities to tank by 30% to 40% this year.”

Nouriel Roubini

Investors may want to heed Roubini’s advice given he was one of the few economists to correctly predict the 2008 financial crisis. To avoid financial catastrophe, Dr. Roubini is urging people to seek safety NOW.

And he’s not the only one doing so. About a year and a half ago, we published a blog citing other experts suggesting clients may also wish to pare down their exposure to stocks in favor of safer options.

Where Can You Find Safety?

In addition to buying safe bonds, structured settlements and retirement annuities remain some of the safest choices for those who require certainty.

Even with interest rates at or near historic lows, structured settlements and retirement annuities remain attractive alternatives. Something about making some money (especially when there’s a decided tax advantage) is more attractive than losing a lot of money.

Consider all these available options clients are currently talking to us about:

Tax-free structured settlements for physical injuries.

Tax-deferred structured settlements for nonphysical injuries.

Tax-efficient structured installment sales to reduce or eliminate capital gains taxes when selling qualifying appreciated assets or businesses.

Fixed indexed annuities which allow participants to benefit from market ups but shield them from market downs.

Market indexed structured settlement options with downside protection.

A structured settlement option that accounts for future interest rate increases.

Multi-Year Guaranteed Annuities (MYGAs) for “better than CD” rates.

Even if you still have faith in the market for the long-term, almost everyone would be wise to consider converting at least some of their safety net to something that is actually safe.

And if Dr. Roubini ends up being right, there’s no time like the present to make a move before things get really bad.

Let us know if we can help save you from drowning.

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