Are You Already Retired or About to Retire?
Are you confident that your current retirement plan is on the right track?
When planning for retirement, a common goal is to make sure you don’t run out of money before you run out of time. Meeting the goal has become more challenging as retirement income sources have changed. While employer-provided pensions and Social Security once provided a strong base for financial security, many people now need to depend more on their retirement savings and personal savings on the right vehicle to keep their plan in balance.
Is Social Security Enough to Secure Your Future Financial Needs?
Social Security will likely contribute some amount to your retirement plan but was never intended to be the only source of income. Understanding how and when to claim your Social Security benefit can make a difference in the payment you receive. In this fast-paced, evolving world, you will probably need additional benefits and cannot rely on Social Security alone.
What is the Best Approach to Address This Major Concern?
A retirement income strategy offered by insurance companies can help increase current guaranteed income that may no longer be provided by a traditional pension and Social Security. This will establish a well-balanced plan that will support you during your retirement years.
If you have money in your 401K, IRA’s, CD’s, you don’t have to worry about risky investment or real estate bubbles or money. Or, you have money just sitting in the bank, we can help putting your qualified retirement funds or cash money into a secured annuity plan. Retirement risks such as uncertain market performance, earlier retirement dates, rising cost of living and increased longevity can decrease or even deplete retirement savings quickly. If you are approaching retirement, taking on too much risk could mean too little time to recoup any losses.
What is Fixed Indexed Annuity?
A Fixed Indexed Annuity (FIA) is a guaranteed contract with an insurance company that offers the potential for growth based on the performance of a stock market index, such as S&P 500, while providing protection and tax-deferred growth on the principal.
After the accumulation period, you can typically choose a deferred or lumpsum payment, or the plan that has a feature to receive a monthly lifetime income. However, there are specific plans available to you that offer immediate lifetime income after the principal is transferred from a particular source. Another type of plan provides cash accumulation from stock market gain but protects you on the downside or has zero losses.
Two Kinds of Fixed Indexed Annuity
Lifetime Income
A Fixed Indexed Annuity for lifetime Income is a type of insurance product that provides a guaranteed stream of monthly payments for the rest of your life in exchange coming from your retirement funds or for a one-time premium payment coming from qualified or non-qualified funds. Its primary purpose is to offer financial security and eliminate the risk of outliving your retirement savings by providing a stable, reliable income not subject to market volatility.
Upfront bonuses upon transfer of the funds are available to several Fixed Indexed Annuity Plans. There are plans that will continue providing additional bonuses and will increase the principal if by delaying the start of your Life Income benefit in the later years.
Growth Potential
A Fixed Indexed Annuity for Growth or Cash Value Accumulation is a type of insurance plan that offers principal protection in down markets and growth potential based on a market index like the S&P 500 and other investment strategies. And this is without direct investment in the stock market. It provides tax-deferred growth on your principal.
The interest credited to the annuity is linked to the performance of the market index, but with a guaranteed floor that protects against losses and limitations like a participation rate or cap on potential gains. There are plans for an insurance company that offers certain bonus percentage that is added after transferring the principal. Nevertheless, there are some plans that have life income riders but could affect the bonus percentage.
What are the Different Benefits of a Lifetime Income and Growth Plans?
Tax Deferral:
Its tax-deferred status allows you to benefit from compounded growth.
Principal Protection:
The original deposit will not decline if the index performs negatively. Please keep in mind, though, that all guarantees are subject to the claims-paying ability of the insurance company.
Earnings credited:
At the end of each term, earnings are credited; at that point, they may be affected by negative index performance. Earnings can, however, be limited by the policy’s spread or cap rates. Some carriers may offer a feature that allows you to take advantage of index highs during your term.
Beneficiary Protection:
You can pass assets to beneficiaries and avoid costly probate. Optional riders, available for an additional cost, can enhance the amount your beneficiaries may receive.
Enhanced Death Benefits:
Most companies offer spousal continuation only upon the first spouse’s death and don’t pay a death benefit out until the second spouse passes. However, some carriers do offer a joint option that may cover the death of either spouse upon the first passing.
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