Fixed Index Annuities
Chances are you are one of the 76 million "Baby Boomers" that will retire within the next 20 years. With so many investment options to choose from, how do you know which one will meet your retirement goals? Stocks have inherent volatility. FDIC insured CDs and money market accounts barely keep up with today's rate of inflation. But the big question should be, will the assets you've worked so hard to accumulate over the years be there when you are ready to retire?
Of all the financial products available to you today, one of the fastest growing is the Fixed Index Annuity (FIA). The FIA guarantees the safety of your principal and a predictable income for a more secure retirement. It allows you to participate in the gains of a stock market index with no downside risk. It allows your retirement dollars to accumulate tax deferred (until you need it) which allows you to earn interest on your principal, interest on your interest, and interest on the money you would have had to pay Uncle Sam. In the event of death, it allows your retirement plan to pass on to your beneficiary and avoid probate. Your retirement dollars are growing and they are safe.
Fixed Index Annuities can help bridge the gap between pension and other retirement plan income and Social Security. And best of all, the money you've worked so hard for all those years will be there for you when you retire.
For Our Free 15 page Lesson in "Fixed Interest and Indexed Annuities"
email us at email@example.com and put Annuity Lesson in the subject line.
Why I Am So Passionate About Fixed Index Annuities
Clients have asked me, why I am so passionate about Fixed Index Annuities(FIAs)? The main reason is that Fixed Index Annuities(FIAs) offer safety and flexibility which is a perfect mix.
A Fixed Index Annuity(FIA) combines the safety of a fixed annuity with the market appreciation of a mutual fund or variable annuity. With a Fixed Index Annuity(FIA), the Insurance Company assumes the risk. With a mutual fund or variable annuity, YOU assume the risk.
The main advantage of a Fixed Index Annuity(FIA) vs a mutual fund or variable annuity is that a Fixed Index Annuity(FIA) has no downside risk nor does it have any sales charges or annual fees.
Another advantage with a Fixed Index Annuity(FIA) is that your money grows completely tax deferred. You do not pay taxes on your gain until you use your money.
Another advantage is that in the event of your death, your Fixed Index Annuity(FIA) proceeds pass directly to your named beneficiary bypassing probate court.
When you purchase a Fixed Index Annuity(FIA) you participate indirectly in stock market indexes. If the market goes up you receive a fair rate of return. If the market goes down, the worst thing that can happen is, you earn “0”; your account does not lose value. In other words you can never lose money due to a down turn in the stock market. Fixed Index Annuities(FIAs) offer different stock indexes that you can choose from. Some include the NASDAQ 100, S&P 500, Russell 2000, and the Dow Jones Industrial Average to just mention a few. BUT REMEMBER…Your money is never directly invested in the stock market.
When you purchase a Fixed Index Annuity(FIA), you are committing to leave your money there for a certain number of years. If you take your money out before the agreed to contract date, there is usually a surrender charge. However, most Fixed Index Annuities(FIAs) allow you to access a certain percentage of your money each year(usually 10%) without any surrender charges.
Many companies offer an interest bonus for putting your money with them. In fact, one company is currently offering up to an 10% interest bonus each and every time you put money into your account for the first seven years.
So, why has over 450 billion dollars been placed in Fixed Index Annuities(FIAs) since 1995? They offer safety and flexibility and are virtually risk free.
For Me It Was All About Getting A Good Night
It’s no secret. We all know that we need to plan for retirement. We know we need to save and have very good intentions. But unfortunately, for some, the “I Will Start Tomorrow Savings Plan” never materializes.
A woman raising a family is faced with competing needs for her savings dollar. Often times she will forgo a career to raise her family or put off her retirement savings to fund educational expenses for her children. Or maybe she needs to take care of elderly parents. Whether she works at home or outside the home, the key to a financially secure retirement is early planning and disciplined savings habits.
Not only is saving dollars for retirement important but choosing the right plan can be just as important. There are employer sponsored plans, CD’s, stocks, and mutual funds. But which one is the best? Well, there is no single one answer. Your future retirement income is highly dependent on cash deposits, the time frame available for accumulating the funds and the performance of the funds. And what is the biggest question of all when deciding on a retirement plan? What is your tolerance for risk?
For me, the answer in choosing the right retirement plan all came down to one thing. It was all about getting a good night’s sleep. I wanted safety and guarantees. I wanted to know that the money I had worked so hard to save would be there when I needed it. I wanted steady growth without the risk of losing my principal and the interest I had already earned.
That is why I chose a Fixed Index Annuity(FIA) as a way to accumulate dollars for my retirement plan. The Fixed Index Annuity(FIA) guarantees the safety of my principal and a predictable income for a more secure retirement. It allows me to participate in the gains of a stock market index with no downside risk. It allows my retirement dollars to accumulate tax deferred (until I need it) which allows me to earn interest on my principal, interest on my interest, and interest on the money I would have had to pay Uncle Sam. In the event of my death, it allows my retirement plan to pass on to my beneficiary and avoid probate.
I don’t have to worry about “Bulls and Bears” or “The Closing Bell”. My retirement dollars are growing and they are safe………And for me, that’s all about getting a good night’s sleep.