RETIREMENT AND ANNUITIES
Saving for retirement is one of the greatest financial challenges facing Americans today. Company pension plans are a thing of the past, Social Security faces a questionable future, and 401(k) and IRA plans have maximum contribution levels that could limit your savings. With an annuity, you can benefit from tax-deferred savings and ensure that you have a guaranteed income in retirement.
HOW CAN AN ANNUITY HELP YOU?
No matter how well you plan, factors like inflation, tax hikes, and increased medical expenses can potentially deter retirement savings, forcing you to suffer a lower quality of life or rely on your family for financial support in your golden years. An annuity can help you avoid a future dilemma and safeguard your financial security by providing you with guaranteed income throughout retirement. In fact, you can structure an annuity to pay you for the rest of your life, even if you live to be 100. You can also use annuities to transfer wealth to the next generation while avoiding probate.
FIXED ANNUITY
This annuity contract earns a stated interest rate (fixed interest rate) offered by the insurance company. Alternatively, the interest rate may be calculated in a manner specified in the annuity contract. No matter how the interest rate is calculated, the investor knows exactly what the future returns or income stream the annuity contract will produce because the applicable rates are set at the time of purchase and never change. In simpler terms, a fixed annuity is a guaranteed lifetime income. A guaranteed lifetime income is a secure, guaranteed, and smart investment for your money.
FIXED INDEX ANNUITY
s 3%, but the returns may be higher if the index returns greater than the base return rate. A Fixed Indexed Annuity guarantees a minimum interest rate if held to the end of the surrender term and protects against a loss of principal. Returns may be higher than fixed instruments such as CDs, money market accounts, and bonds. Fixed Indexed Annuities are insured by the State Guarantee Fund which is similar to the insurance provided by the FDIC.