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Annuities
Annuity For Retirement
Planning for retirement can be stressful. However, you may be unaware of key options that might simplify and boost your confidence in your retirement plan. An annuity for retirement may provide interest at a reasonable rate of return** while safeguarding both principal and interest. Our primary purpose is to guide you toward retirement income solutions that include safety features, so you can retire with confidence.
Safe Money
Fixed Indexed Annuity For Retirement
Fixed indexed annuities (FIAs) are a form of annuity contract. FIAs provide indexed interest and guaranteed safety. The performance of a market index will raise your interest rate, allowing for bigger returns when the market rises. Even if the index falls, your FIA will retain its value. Importantly, FIAs are not investments. The money in your annuity is safe, even if the market crashes.*
FIAs Vs Retirement Plan Accounts
Traditional retirement accounts, such as 401(k)s and IRAs, differ greatly from FIAs. FIAs may offer greater flexibility than traditional retirement accounts, such as:
- Protection in the event of a market downturn
- No contribution limits
- 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
Phases of an Annuity
Annuity contracts include two phases: accumulation and distribution. During the accumulation phase, you make contributions to your annuity and allow it to grow tax-deferred based on the performance of a market index. Each contract calculates interest differently. The distribution phase begins when you start to withdraw funds from your annuity. Your contract will also stipulate when and how much you may withdraw.
Annuities and Taxes
Annuities earn interest tax-deferred. This means you only pay taxes on the money when you withdraw it. In this way, an annuity differs from many retirement plan accounts. Additional tax breaks may apply. For example, if you got a lump-sum payment from an employer-issued 401(k), you can defer taxes by transferring the funds to an annuity. However, you should consult with a skilled tax counselor about these topics.