Why Annuities?

Annuities have a long history of successful retirement income planning, dating all the way back to the Roman Empire in A.D. 225! Simply put, an annuity is a guaranteed payment for a certain period of time, more commonly a lifetime. Ensuring the recipient of the payment never outlives their money and has a guaranteed income for as long as he or she lives.

Think of Social Security, it can be compared to a deferred income annuity, you work and contribute into the plan and then once you retire you receive a payment for life. In today’s marketplace consumers are able to take advantage of annuities and guaranteed income by utilizing retirement assets such as IRA’s, Roth IRA’s, SEP IRA’s and even money that is not classified as retirement accounts such as bank savings and brokerage accounts.

There are different types of annuities depending on risk tolerance and financial goals. For example, for a simple guaranteed rate of return, there is a fixed annuity for a more aggressive rate of return that is exposed to risk there is a variable annuity. However, over the years the industry has evolved and now offers a middle ground known as a fixed indexed annuity where the individual can benefit from a portion of the market gains without exposing themselves to risk and while having the ability to earn more interest than a fixed annuity.

The Fixed Index Annuity (FIA) has become one of the most popular choices allowing consumers to participate in a portion of the market’s gains, providing safety form volatility and market downturns and can even provide guaranteed lifetime income. This is the most significant risk in retirement, outliving your money!

For most people, A long-term financial retirement plan should include an annuity it will help hedge risk and provide a consistent payment in addition to any Social Security, Pension or other forms of fixed income. If you currently own an annuity or are interested in learning more about how an annuity may benefit you and your family, simply ask.