Fill the Gap In Your Retirement Plan
Our world has changed—how we think of retirement has to change too. As we meet fewer clients covered by traditional pension plans, annuities become one of the main tools we use to augment our clients’ retirement portfolios and grow their retirement income. Our expert team will help you determine if an annuity is right for you, the type of annuity that will help you maximize your wealth, and educate you on how your annuity fits with your comprehensive financial plan.
What Is An Annuity?
Annuities are a contract between you and an insurance company. These contracts are designed to help you generate a protected lifetime income stream, even in the event of market downturns, and grow your retirement income on a tax-deferred basis. Think of an annuity like insurance for your retirement, guaranteeing a monthly check for the rest of your life.
Immediate Annuity
To put it simply, this type of annuity is a contract to give the insurance company a premium in exchange for a payout each month for the rest of your life. However, a major downside is that many of these kinds of products do not include a death benefit, meaning the insurance company will stop making payments once you pass away. Additionally, any principle that is left behind, the insurance company gets to keep.
Fixed Annuity
A fixed annuity contract ensures that an insurance company will pay you a fixed rate of interest for a specific period of time. Fixed annuities grow tax-deferred, meaning that you won’t pay any taxes on the earned interest until you withdraw it. Like all products, read the fine print—sometimes companies offer multi-year contracts that only guarantee rates for the first year. Our office can help you decide if this type of contract is right for you.
Variable Annuity
This product gives you a solution to low contribution limits by allowing you to invest in mutual funds inside a tax-deferred insurance vehicle with no investment limits, sometimes with death benefits or an income value, depending on the contract. But understand: the investment you’re making is in mutual funds—that means you don’t have protection on your principle. If the value of the underlying investment decreases, so does your investment.
Fixed Index Annuity
This variety combines the features of the others while eliminating many of the risks and drawbacks. Fixed index annuities protect your investment principle. If the market goes up, most contracts offer an interest credit, while if the market goes down, you’re protected from your retirement going with it.
Maximize Income, Stabilize Your Retirement
We all worry about the future and what it may bring. Annuities offer a diverse retirement tool that can help you protect against the unexpected, grow your assets, generate income for retirement, or leave a legacy for the ones you love. Get in touch to learn more about which features best suit your needs.
No Contribution Limits
Unlike 401(k)s and IRAs, you can set the amount that you want to invest.
Tax-Deferred Growth
You can save money by not paying taxes on the interest until you begin making withdrawals.
Fund Retirement
With an annuity, you can generate an additional retirement income stream for life.
Leave a Legacy
Death benefit riders let you transfer your wealth to your loved ones.
Get in Touch
Make sure your savings last just as long as your retirement. Let’s talk about your unique financial situation and how we might help you fit an annuity into your retirement plan.