Indexed Annuities

When discussing retirement for our clients, we believe these are the key components: safety, protection of principal, avoiding market risk, low to no fees, income generation, tax deferred growth, inflation, and taxes. There are lifetime income riders and bonus offerings that may work to provide income benefits for life and additional income in case of medical confinement. Having part or some of the client’s assets in a place that provides lifetime income without the risk of market volatility is key. These are some of the fundamental features of indexed annuities and why having the option to include them as part of your financial picture is important.

With people living longer due to better health, diet, and nutrition, it is very important to address longevity when it comes to retirement. Outliving your income due to poor investments, market risk, fees/expenses, or overspending based on your age limits can greatly impact your life’s savings. The number one fear people have upon retirement is not death, but running out of money! With an indexed annuity, options are available for addressing risk, protecting principal, and providing lifetime income for the owner AND spouse without the fear of running out of money. There is a low cost for lifetime income benefit. Beneficiary benefits and probate benefits are part of these products, as well.

In planning for retirement, strategically placing part or some of the client’s assets in an indexed annuity allows the remainder to be kept liquid in our Asset Management Solutions portfolios. These assets are managed by the advisory risk money managers and models selected based on the client’s needs. Thus, the client is addressing risk throughout their entire
retirement, while having liquidity from the advisory investments and safety from the indexed annuities, all at once!

This is very important because the client is fully benefiting from each of the strategy’s strengths.

* Annuities are products of the insurance industry and are not guaranteed by any bank nor insured by the FDIC or NCUA/NCUSIF. May lose value. No bank/credit union guarantee. Not a deposit. Not insured by any federal government agency. May only be offered by a licensed insurance agent. Fixed Index annuities do not directly participate in the stock market or any index. It is not possible to invest in an index. Withdrawals are subject to income tax, and withdrawals before age 59½ may be subject to a 10% federal tax penalty. Annuities have limitations. They are long-term vehicles designed for retirement purposes. They are not intended to replace emergency funds, to be used as income for day-to-day expenses or to fund short-term savings goals. Guarantees and protections are subject to the claims-paying ability of the insurance company. A fixed indexed annuity is a contract you buy from an insurance company that provides the opportunity to earn interest based on the changes in an index such as the S&P 500® Composite Price Index. Regardless of index performance, indexed annuity contract values will not be impacted by negative index returns.