RETIREMENT INCOME PRODUCTS
Do or don’t you add annuities to your retirement income plan. This is not a cookie cutter approach and doesn’t fit everyone’s retirement needs. Learn how annuities can help generate a stream of income or increase your current saving. Annuities are investment products that may be used to help you increase savings, protect your savings, or generate a stream of income. The four the types of annuities are:
1. Deferred annuities offer tax-deferred growth potential, with underlying investments that can be fixed or variable.
2. Immediate income annuities can turn a portion of your savings into income for either the rest of your life or a set period of time, starting immediately or at a later date.
3. VARIABLE ANNUITIES provide no safety when the market goes down and charges excessive fees. This type of annuity can provide an income stream if needed and death benefit if you pay an extra fee.
4. FIXED INDEX/HYBRID ANNUITIES give you more flexible growth and income option than the deferred or immediate annuity with little to no fees or loss to the account value when the market goes down.
These annuities can turn a portion of your savings into a guaranteed2 income stream, starting on a date in the future. Some allow access to assets before or after income payments begin. Some are also for only growth in the case you are not interested in income, but more tax deferral and conservative growth without the worry of fee or market crash lowering your account value.
If you own an annuity, a tax-free exchange to one of our companies may help you accumulate more for retirement with lower fees. If you have a penalty, there is a likely hood we can find another company that suites your needs that will offer a bonus so that you still start out ahead of the game with the move.
WHO IS THIS APPROPRIATE FOR: Investors who want to increase their tax deferred retirement savings beyond the contribution limits of an IRA or 401(k), with the ability to invest in a wide range of investments potentially without fees including equity, bond, fixed and index funds. There is not a required minimum distribution at age 70.5 like in other retirement account’s or IRA’s. This is a good option for tax efficiency and estate planning.