With the rapid reduction of employer pension plans and the concern about social security being available in the future, consumers are looking at other options in order to support their retirement plans. Considering stock market volatility and failures in the past, safety of assets is of paramount importance.
We offer consumers several different products to grow their retirement fund, all of which are guaranteed against loss. We do not believe in exposing our client’s assets to risk of any kind and over our years in business, not one of our clients has suffered financial loss. The main products we use to create growth for our clients are defined as fixed index annuities.
These annuities offer growth based on the increase of a stock index along with minimum guarantees in the event the index stays flat. Some annuities offer a bonus as high as 10%, based the initial premium deposit and length of term. There are also riders available which can provide lifetime income that will continue even if the account value is zero.
Again, the importance of an experienced advisor becomes apparent because of the consideration of suitability and the consumers financial experience. Annuities are not for everyone and consideration must be given to time horizon until retirement, emergency access to funds, future needs and more. Also, it is important to consider income riders which grow outside of the base asset at a significantly higher interest rate and offer guaranteed income for life.
A fixed annuity can help you accumulate tax-deferred earnings as part of your overall retirement plan. Annuities offer the opportunity for lifetime payments and tax-deferred earnings, and provide a guaranteed death benefit for your beneficiaries. All guarantees are backed by the continued claims-paying ability of the issuing insurance company.
You may want to consider investing in an annuity as part of your long-term financial strategy if:
- You’re in a higher tax bracket, and want to defer additional income.
- You’ve reached your deductible limit on all your retirement accounts and wish to save more for retirement.
An annuity is different from most other retirement savings vehicles — it’s actually a contract between you and an insurance company. In return for making one or more premium payments, the insurance company agrees to provide you an income stream — usually during retirement. You can elect to receive payment all at once or as a series of payments, even for the rest of your life.