Understanding the Benefits
Understanding The Benefits Of
Annuities For Retirement
Using annuities for retirement could allow you to receive a series of guaranteed* payments on a set schedule. Basically, an annuity is a contract with an insurance company. The specific details will be outlined in your contract. For example, whether your payments will be received monthly, quarterly, or annually. Furthermore, there are different types of annuities. Fixed annuities will not lose money in the event of a stock market drop. Variable annuities, meanwhile, allow for potential for higher returns, but might suffer losses if the market goes down. Lastly, fixed indexed annuities (FIAs) can provide both protection (backed by the claims-paying ability of the insurance company) and indexed interest at a reasonable rate of return.** For this reason, it’s our opinion that an FIA is the most useful of these products. Interested in learning more?

Fixed Indexed Annuities For Retirement
An FIA has the benefit of keeping your principal protected, even in the event of a market drop. This is because the issuing insurance company is required to set your money aside in a reserve. However, an FIA’s interest rate is based on the performance of a stock market index. This means if the market goes up, you may see higher returns, but if the market dips down, you won’t lose any money, guaranteed.* The contract and the strength of the insurance company will protect you.
Understanding The
Stages of an Annuity
An annuity contract has two main stages: The accumulation stage, and the distribution stage. These are important in understanding the benefits of annuities for retirement.
Accumulation Stage
During the accumulation stage, you contribute money to the annuity and leave it to grow over time. Interest is tax-deferred, and based on the performance of a market index or indexes. The way the interest rate is calculated will depend on your individual contract.
Distribution Stage
The distribution stage begins when you withdraw money from your annuity. When you can begin taking payments will also be outlined in the contract. Additionally, you can set up the rate at which you want to receive payments.
Interested in learning more about these products?
Reach out to us. Using annuities for retirement is one of the things we discuss at our educational seminar events. Or, if you want to cut straight to the chase, you can schedule a one-on-one meeting with us. We can discuss your individual situation and goals. Is an FIA the right option for you?