"Diversify."
"Position yourself as safe as possible during bear markets."
"Don't lock yourself into one strategy during a period of market volatility — you must be able to adjust your plan periodically based on the current market conditions."
These are all things retirees hear every day. And they're all great advice.
Unfortunately, many aren't hearing "the rest of the story," as Paul Harvey used to say.
Enter: The Reallocation Factor.
Here's the truth.
Anyone working with those in retirement or planning for retirement needs to be aware of the power of reallocation in a fixed point-to-point index crediting product.
This type of product can tick all the boxes of expert advice we discussed earlier.
The Rest of the Story.
In a fixed indexed annuity, using the point-to-point crediting product, the account is shielded from losses regardless of what happens in the selected indexes.
This is especially important for those nearing retirement, due to the lack of time they would have to recuperate any losses.
Most people don't realize that recouping a 30% loss takes a 42% gain.
And that's only if they're not taking withdrawals simultaneously.
This takes care of the advice to protect yourself during down markets.
Stormproofing
The rest of our expert advice can be satisfied by reallocation.
This means being able to change course when you see a storm coming.
It also means not locking yourself into one strategy for an extended period.
Tim Wood is a founder and broker at 
