Fixed indexed annuities (FIAs) address many basic retirement concerns people have living in Newport Beach, Ca and surrounding areas: protection of your hard-earned dollars, tax-deferred growth, balance, and lifetime income, preferably that you can't outlive.
You get peace of mind — no matter what's currently going on in the market. Consider these five key benefits of Fixed indexed annuities:
Guaranteed Income Stream
Americans are living longer and they are spending more time in retirement. The majority of retirees are concerned about outliving their savings - aren't you? They are searching for a product that can help ensure a steady income stream. Did you know that Fixed indexed annuities (FIAs) are designed with guaranteed lifetime income so you can never outlive your earnings?
Fixed indexed annuities offer predictable income so investors feel more comfortable when withdrawing funds from these retirement vehicles, as opposed to an IRA or 401(k). Choosing a Fixed Index Annuity is an efficient tool to plan for your future, as your interest earnings rate always remains somewhere between the interest rate floor and the cap.
Diversification of Portfolio
A well balanced portfolio is essential for managing risk and reward in the financial markets - always has been, but now it's more critical because we are living longer. Designed for the long term, fixed indexed annuities are a great retirement vehicle to ensure you are not putting all your "eggs" in one basket. FIAs offer the ability to make a respectable return on your money, without the risk of losing it.
Even with market volatility, investors will not lose their investment on their fixed indexed annuities. The savings aren’t exposed to market fluctuations, so even with a negative market return, interest credited will never fall below zero. You can never lose your interest once it’s credited to your principal, so your money grows without loss.
Fixed indexed annuities offer long-term tax-deferred savings. As long as your money stays in the annuity, you will not be taxed on interest earnings. Once you start to receive a payout, the annuity will be taxed as ordinary income like a 401K or traditional IRA.