Annuities
Annuity For Retirement
Time time leading up to retirement can be stressful. However, you may be unaware of key solutions that could simplify the process and boost your confidence as you financially plan out your retirement. An annuity for retirement may provide interest at a reasonable rate of return** while safeguarding both principal and interest. Our primary purpose is to guide you toward retirement income options that prioritize safety and stability.
Fixed Indexed Annuity For Retirement
Fixed indexed annuities (FIAs) are a form of annuity contract. FIAs provide indexed interest and guaranteed* safety. The performance of a market index will raise your interest rate, allowing for bigger returns when the market rises. However, even if the market falls, your FIA will retain its value. Importantly, FIAs are not investments. The money in your annuity is safe, even if the market crashes.*
Discover the Difference
FIAs Vs Retirement Plan Accounts
Traditional retirement accounts, such as 401(k)s and IRAs, differ greatly from FIAs. FIAs may offer greater flexibility than traditional retirement accounts, such as:
- Protection in the event of a market drop
- No contribution limits
- Your money grows tax-deferred, meaning you won't pay taxes on it until you withdraw it
- No RMDs (required minimum distributions)
- You could potentially "roll over" the money from your 401(k) or IRA into an FIA instead
Stages of an Annuity
Annuity contracts include two stages: accumulation and distribution. During the accumulation stage, you make contributions to your annuity and allow it to grow tax-deferred based on the performance of a market index. Each contract calculates interest differently. The distribution stage begins when you withdraw funds from your annuity. Your contract will also lay out when and how much you may withdraw.
Annuities and Taxes
Annuities earn interest tax-deferred. This means you only pay taxes on the money when you withdraw it, as opposed to the way many retirement plan accounts function. Additional tax breaks may apply. For example, if you got a lump-sum payment from an employer-issued 401(k), you may be able to defer taxes by transferring the funds to an annuity. However, you should consult with a skilled tax advisor about topics such as these.
Considering purchasing an annuity for retirement?
Attend one of our informative seminar events, or organize a one-on-one meeting to explore your specific circumstances and whether an FIA may be a good fit for you.