Fixed Indexed Annuities? Can they really help me in retirement? Watch this…
Many people have money in an CD or other savings account planning “for a rainy day” in retirement. That’s not a bad idea, however, there may be a place to keep that money that will generate a larger interest, grow tax deferred and allow you to have an income stream that you can’t outlive. That place is a Fixed Indexed Annuity.
One of the main features of a fixed indexed annuity is that it smooths out the market ups and downs also known as gains and losses. As you saw in the video, a fixed indexed annuity does not invest directly in the market so you may not get all of the gains, but you won’t get any of the losses, either. If you have all of your retirement money in a traditional retirement plan, like a 401k or IRA, your money is subject to the losses in the market it is invested in.
Would it make sense to take some of the risk off of the table by putting a portion of your current account in an fixed indexed annuity? It might, and the closer you are to retirement, the more important it is to reduce that chance of loss.
How would you feel if all of a sudden, due to no action of your own, your retirement account lost 20%? 30%? What about 40%?
If you didn’t experience that in 2008-2009, ask one of your friends that was in the market at that time. I am sure they will tell you about the sleepless nights, the worry and the fear of not being able to retire when they planned to.
Well, with the worldwide economic situation we are facing today, it is possible that it could happen again. Senator Hillary Clinton said recently that Americans retirement plans lost $150 Billion overnight when the U.K. left the European Union. I can’t verify that amount, but how would you feel if that happened and you were planning on retiring this year? Would that change your plans any?
You can avoid those losses and fears about retirement by having some (not all) of your money in a fixed indexed annuity. Also, knowing that you are creating an income stream that you can’t outlive should help you sleep a little better tonight too.
If you would like to learn more about how a fixed indexed annuity could help you, please give me a call. We will go over your current plan and see if it makes sense to own one now and what the benefits to you will be later on.
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