Do you own a 401 (k) but are still working? Most 401 (k)s offer investment options such as mutual funds. Investment options in the mutual funds can be stocks or bonds or a combination of both. As we age, providing a layer of safety and security to our 401 (k) seems only prudent. As an option, your 401 (k) will also offer a stable money investment option. These options could include a money market account. The problem with money market accounts is the yield, a yield which may not keep up with inflation.
What are your options? Keep you funds invested in a mutual fund and remain exposed to risk? Or move your funds to the money market account and fear losing purchasing power to inflation. Not an enviable choice is it.
Have you ever heard of Age Based In-Service Withdrawals? Almost 90% of 401 (k) plans in America offer this option, You may keep working at your job but at age 59 1/2 you can move a portion or all of your 401 (k) to another investment option.
The transaction is called a rollover; your funds are moved with no tax liability to you. Now your 401(k) has become a self-directed IRA and you are allowed to invest it in almost any vehicle.
One solid choice is a Fixed Indexed Annuity which contains an Income Rider. The funds in a Fixed Indexed Annuity are fully guaranteed against loss and you will never be exposed to risk again.
With an Income Rider attached to your Fixed Indexed Annuity, your retirement income is also guaranteed. And best of all, your options for a retirement pension can include your spouse all with the guarantee neither of you will ever out live your money.
Sound too good to be true? It is true, just another benefit of owning Fixed Indexed Annuities.