Learn About
Annuities
What is an Annuity?
An annuity is a valid retirement option for many. Some types of annuities may be able to provide you with a source of guaranteed* income. Additionally, it could get you reasonable rates of return** and minimal risk.
One great benefit of an annuity? In the event of a market drop, your money will remain protected. But, when the market is on an upward trend, the money in your annuity can grow! Some may consider this the “best of both worlds.”
What is an annuity, and is it right for you? We can help you answer this. We’ll take the time to educate you. What are your current needs and goals? Do you know what your current fees are? Are you comfortable with your current rate of return? And, are you aware of all your current risks? We may be able to help you approve upon your retirement strategy.
Annuity Myths and Misconceptions
There are a number of misconceptions about what an annuity is. You may hear some agents say that annuities are bad. Why do they say this?
Well, for one thing, not all annuities are created equal. There are a few different types of annuities. Some invest money directly into the stock market. However, there are others that work differently. Some of these products come with a guarantee* of safety, and some allow both this benefit and reasonable rates of return.** You can contact us to learn more about these types of annuities.
What is an Annuity? Then Vs Now
In the past, options for annuities were much more limited. Some offered protection of principal, but had very low returns. Others offered better returns, but came with the risk of losing the money you put into it. Thankfully, though, the industry has changed.
If you work with the right company, you can find an annuity product that suits your needs. You don’t have to choose between reasonable rates of return** and keeping your money safe and secure. Not only that, but some annuities also come with features to counter inflation, certain tax benefits, and methods of leaving a legacy. Retirees have more annuity income options available than ever before. Work with a licensed professional to help understand what an annuity is and if it may be right for you.
Let's Talk About The
Types of Annuities
There are three main types of annuities that exist: Fixed annuities, variable annuities, and fixed indexed annuities, or FIAs. The benefits and risks that come with an annuity vary depending on which type it is.
Fixed Annuities
First, there’s a fixed annuity. A fixed annuity, by design, protects against loss. However, it offers fixed rates of return. The rates are typically based off of current interest rates, and as a result, the return may be underwhelming. While this option is safe, it may not be able to support your retirement goals.
Variable Annuities
Then, in stark contrast, there’s a variable annuity. A variable annuity is an investment account: the money in it is invested in the stock market, and the growth of the account is based on the value of the selected stocks. While it could potentially offer high returns, this product has the downside that, if the stock market drops, so does the value of the product. Can you handle this risk?
Fixed Indexed Annuities
Lastly, there’s a fixed indexed annuity. While an FIA grows based on the performance of a market index, it also comes with a guarantee* of safety. Also, this product allows for tax-deferral on your money.
Additionally, an FIA may offer other benefits, depending on the terms of the individual contract.
It may come with a way to counter inflation, if you select an income rider. And, this product may be able to not only provide you with a safe, reliable income source, but also help you leave money to your loved ones after you are gone. Care to learn more? Contact us.
Learn More
We have a thorough process for determining if a fixed indexed annuity is the right option for you. Attend one of our information seminar events (which come with a gourmet dinner) to find out more. Or, you could meet with us one-on-one to discuss your personal retirement strategy and goals. Together, we’ll discuss several details that impact your retirement, such as:
- What stage of retirement are you in?
- How much do you have in liquid assets?
- How much of that cash is available for emergencies?
- Will income provided by an annuity be enough to cover your expenses?
- Whether you’re okay with risk, and how much of it you can tolerate
- And more!