Bulls, Bears, Turtles, and Hares By Steven & Blake Rainey S.A.F.E. Planning, Inc. November 2002 Remember the old story about the race between the turtle and the hare? The rabbit blasted ahead when the race started with unbelievable speed, but soon tired and the turtle at his slow but steady pace ended up ahead in the end. Slow but steady wins the race. While this story can be applied to many aspects of life, I would like to look at it from a financial standpoint. In Lane #1, Seniors who are in the stock market can be compared to the Rabbit. They have probably seen explosive gains in the past years, but unfortunately many have seen just as drastic (if not more so) reductions in their portfolio. As the Bulls fight to post big gains - the Bears growl, bite, and rip away at the market, and this ongoing battle leaves the poor rabbit right in the middle of the fight with no protection, hoping and praying to get out of this race alive. In Lane #2, there are the more conservative investors. They want steady growth and protection without risk - the Turtles. They will obviously be outpaced at times by the Rabbit, but will continue on, steady and strong, always knowing that they have a protective shell to keep them out of harm's way on their journey. No matter the dangers that arise in the race, the Turtle can keep moving forward safely. So where does the conservative investor place their savings to have the characteristics of the steady moving, safe Turtle? In Tax-Deferred Annuities! Now please take note - we are not talking about variable annuities. Variable annuities still have market risk because they are invested in stocks and mutual funds. The annuities that we recommend are Fixed. Fixed meaning that you are guaranteed your principal + interest. Whether the product is designed to pay you a set interest rate, is based on a Market Index, or is based on a bond strategy, you have guarantees that you won't be left short. As for protection, how about this - annuities bypass probate. Annuities are tax deferred if the interest is not drawn out. Annuities offer protection from creditors. Annuities guarantee your principal + interest. SOME, NOT ALL, annuities can be structured to comply with Medicaid guidelines, allowing money to be protected that would otherwise be spent in the event of long term care. Nobody knows how the fight between the Bulls and the Bears is going to end, but one thing is for sure - the battle will go on. I encourage you to take a moment and weigh the benefits of coming over to the Turtle's way of life. Steady and strong and able to make it through the financial battles with little change in pace, but knowing all the while you'll finish in one piece. As displayed in Best of Times (formerly Senior Scene)

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