Fixed Index Annuities
Annuites For Retirement
Planning for retirement can be stressful. However, you may not know about certain options that could simplify your retirement strategy and help you be more confident in it.
An annuity for retirement may offer interest at a reasonable rate of return** while protecting* your principal and interest. Our main goal is guiding you toward retirement income options with safety built in.
Fixed Indexed Annuity For Retirement
A fixed indexed annuity (FIA) is a type of annuity contract. FIAs offer indexed interest and guaranteed* safety. Your money links with an index, not the stock market. When the index goes up, so does your return. However, your FIA won’t lose value if the index declines. FIAs are not investments. The money in your annuity is safe, even in the event of a market crash.*
FIAs Vs Retirement Plan Accounts
Traditional retirement plan accounts like 401(k)s and IRAs differ from FIAs significantly. FIAs may provide more flexibility than standard retirement accounts, such as:
- Protection in the event of a market drop
- No contribution limits on your FIA
- Your money grows tax-deferred, meaning you won’t pay taxes on it until you withdraw it
- You could potentially “roll over” the money from your 401(k) or IRA into an FIA instead
Stages of an Annuity
Annuity contracts work in two stages: accumulation and distribution. During the accumulation stage, you contribute money into your annuity and let it grow, tax-deferred, based on the performance of a market index. Each contract calculates interest differently. The distribution stage begins when you withdraw money from your annuity. Your contract will also specify when and how much you can withdraw.
Annuities and Taxes
Annuities gain interest tax-deferred. This means you pay taxes on the money only when you withdraw it, unlike with retirement plan accounts. Additional tax breaks may apply. For example, if you’ve received a lump-sum payment from an employer-issued 401(1k), the money may be transferred into an annuity to postpone taxes. However, you should ask a qualified tax advisor about matters like these.
Considering purchasing an annuity for retirement? Reach out to us to learn more. Attend one of our educational seminar events, or schedule a one-on-one meeting to discuss your personal situation and if an FIA could be the right choice for you.