Retirement planning
Fixed Indexed Annuities
Fixed indexed annuities (FIAs) address many basic retirement concerns: protection of hard-earned dollars, tax-deferred growth, balance, and lifetime income.
Get some peace of mind — no matter what happens in the market. Consider these five key benefits:
Guaranteed Income Stream
With Americans living longer and spending more time in retirement, many retirees are concerned about outliving their savings. In turn, they are searching for a product that can help ensure a steady income stream. Fixed indexed annuities (FIAs) are designed with guaranteed lifetime income so you can never outlive your earnings.
Diversification of Portfolio
A balanced portfolio is essential for managing risk and reward in the financial markets. Designed for the long term, fixed indexed annuities (FIAs) are a great retirement vehicle to ensure you are not putting all your eggs in one basket. FIAs offer the ability to make some money, without the risk of losing it.
Principal is Secure
Even with market volatility, investors will not lose value on their fixed indexed annuities (FIAs). Your savings aren’t exposed to market fluctuations, so even in a negative market return, interest credited will never fall below zero. You can never lose your interest once it’s credited to your principal.
Predictable Earnings
Because fixed indexed annuities (FIAs) offer predictable income, Americans feel more comfortable when withdrawing funds from these retirement vehicles, as opposed to an IRA or 401(k). Choosing an FIA is an efficient way to plan for your future, as your interest earnings rate always remains somewhere between the interest rate floor and the cap. In turn, 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. As long as your money stays in the annuity, you will not be taxed on interest earnings. Once you receive a payout, the annuity is taxed as ordinary income.
These 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.
With these significant benefits of FIAs, you may be wondering if it is the only type of retirement savings you need. The best long-term savings plan ensures balance by bucketing money in a variety of vehicles, as each has unique benefits.
401(k), 403(b), 457, and other qualified retirement plans are tax-advantaged plans established by the IRS to help Americans save for their retirement years. Many organizations that offer these plans provide their employees with self-service options to access the savings and investment components within these plans. Working with a professional to review your options, as well as the impact of those selections on your savings and retirement income potential, can prove to be invaluable advice for the future.
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Is a Fixed Indexed Annuity Right for Me?
Ensure you have the financial security to be in control of your retirement.
Before determining if an FIA is right for your portfolio, make sure you understand the specific product features and if the benefits ladder into your goals.
If you…
- have a retirement plan in place, but want to add balance to the mix
- need your earnings to never fall below zero
- want growth potential, coupled with principal protection from market loss
- seek a guaranteed minimum rate of return that never varies, regardless of market swing
- are interested in an annuity where the insurance company assumes the risk
…then an FIA might be right for you.
A financial professional, who is licensed to sell FIAs, like myself, is a great resource to help you decide if you should add one to your portfolio.
Calculate Your Retirement planning
Will your current savings strategy lead to the accumulation you want? Utilize this calculator to determine when and if your funds will run out during retirement. Your results will provide insight into how long your savings will last and what changes you can make to achieve your goals.
How do tax options impact my savings?
Putting in the same principal and annual contributions, what will you accumulate in a fully-taxable account, in a tax-deferred option (like an FIA) and in a tax-free vehicle?
What are the tax advantages of an annuity?
This calculator compares the tax advantages of an annuity versus an account, where the interest is taxed each year, like a CD. With an FIA, you do not have to pay taxes on the interest earned until you begin making withdrawals. This tax-deferred period can have a dramatic effect on your growth.
When it comes to your financial portfolio, what is your propensity for risk? Complete the following questionnaire to see what adjustments you need to make to be on the path to a secure retirement.
What will my Social Security payment be?
Many factors will impact the Social Security benefit you may receive. This calculator approximates your Social Security benefit. Once you know your Social Security estimate, you can determine how much additional guaranteed lifetime income you may want from an FIA.