Discover the Truth About Financial Planning – Why You Need a Better Approach

What’s an Annuity and Why Should I Have One?

Your retirement portfolio may include stocks, bonds, mutual funds and a 401k – that all play a role in achieving a successful retirement. There are other factors that may imped your progress such as market risk, job change and other factors. You may want to consider adding an annuity, which can complement your portfolio by providing attributes for retirement that those categories do not offer.

An annuity is a contract between an insurer (an insurance company) and the contract owner. An annuity contract allows you to contribute funds (on a tax-deferred basis) with interest, with the goal of creating wealth over time, and also deliver the reliable lifetime income you’ll need in retirement.

There are several types or varieties of annuities, including fixed annuities, indexed annuities, and variable annuities. There are other options, such as single premium instant annuities (SPIAs), but we will focus on what many consider to be the best balance between safety and growth, the Equity Index Fixed Annuity, commonly known as FIA (Fixed Indexed Annuity).

Benefits of Indexed Annuities

A Fixed Indexed Annuity (FIAs) can address many basic retirement concerns: tax-deferred growth, protection of hard-earned dollars, and guaranteed lifetime income.

Perhaps the greatest benefit of all – peace of mind – is yours, no matter what happens in the market. Check out these key benefits:

Conquering The Fear Greater than Death

We are living longer and spending more time (and money) in retirement. Many Americans are concerned about outliving their savings, running out of money. Fixed indexed annuities (FIAs) are designed with guaranteed lifetime income so you can never outlive your earnings. Other features, including a death benefit, can help protect your estate to take care of your spouse or your family.

Adding Safety to Your Portfolio

A truly balanced portfolio is essential for managing risk and reward in the financial markets. Designed for the long term, we recommend that as you near retirement, having at least a portion of your portfolio containing fixed indexed annuities (FIAs) as a means to ensure you are not putting your retirement eggs at risk. FIAs offer the ability to make some money, without the risk of losing it. Because there is a huge diversity in the types of solutions available, we recommend a proper analysis (at no-cost to you) to
identify the best options to meet your savings, income and liquidity needs.

Reliable Earnings

A fixed indexed annuities (FIAs) offer guarantees, even if there are down years in the stock market. Additionally, fees are low compared to a mutual fund or 401k. Many plans offer a Guaranteed Lifetime Income, meaning that no matter what happens in the market, you can count on payments throughout your golden years.

Tax-Deferred Growth

Fixed indexed annuities (FIAs) offer long-term tax-deferred savings and accumulation. You will not be taxed on interest earnings until money is withdrawn.

The benefits of fixed indexed annuities (FIAs) can help balance risk and reward in your overall portfolio, which may already include retirement accounts and other investments.

An important consideration is to compare a FIA with other retirement vehicles, including 401(k), 403(b), 457, and other qualified retirement plans offered by employers. Always review your situation and your options with a professional to assess the impact of those selections on your savings and retirement income potential. For example, what happens if you change jobs, or if you need access to a portion of the funds? It’s important to make informed decisions and It can prove to be invaluable advice for the future.

Part of a Sound Retirement Strategy
Talk with us to see if an FIA is Right for You.