What is an annuity?
Annuity is defined as: a fixed sum of money paid to someone each year, typically for the rest of their life. It can also be defined as: a form of insurance or investment entitling the investor to a series of annual sums.
The stigma around annuities is one that needs to be stricken. We are not advocates of what were old and called “Traditional Annuities.” However in 2015 and for the past 40 plus years our economy continues to cycle back around and we have seen several downturns and major losses in so many retirement accounts.
The faulty problems with a 401K is that your money can remain at risks of the stock market loosing, which as you probably have experience leads to major losses. Welcome to the modern day solution for the big retirement losses that you stand to suffer during the next epic stock market crash, similar to what you had happen in 2008 if you were not protected by what we call in the insurance industry a Fixed Index Annuity or an Index Annuity.
Both Fixed Index Annuities and Indexed Annuities can provide the following:
- Secure Principal Balance during the terms of the contract
- Protect You with Guaranteed Annual Payments
- Your Retirement Income Can Still Participate in the Stock Market
- Your Spouse or Yourself still Gets the Full Pension Payment Amount even if One of Your Were To Die
- Guaranteed Payments for Both Your Lives until death
- Principal Investments Can Be Passed down to the Beneficiaries after Death
- Liquidity to Withdraw up to 10% annually with no penalty
The Index Annuity is your “New School Retirement Strategy.” The reason that we recommend this to our clients and you as well is that protecting your retirement is very important.
Let me ask you a question?
What do you suppose the #1 FEAR is for people that are going to retire or have just retired?
The fear of running out of money before their death.
That is a terrible thought.
Could you imagine possibly being in your mid 80’s being healthy and ready for 10-20 more years of life only to find out that the money is gone?
That could be very tough on any senior. And I think that you would agree that none of us would want to have to go back to work when we get old after our retirement has begun.
Now think about where your retirement income is. In most cases Americans have their retirement money heavy in mutual funds and 401k plans. Those retirement savings vehicles have one major problem and that is, your money is not protect from a major change in the stock market. Let’s think back to our first scenario. You are 74 years old, and you still have money in your retirement. You are enjoying the life that you have and suddenly the stock market hits a rocky patch. What if your retirement savings that was in a 401K takes a big hit and your principal balance will leave you short money to live on and carry out your retirement in life?
Again, this would be a terrible situation, but the good news is that insurance companies have decided that if you can insure your home, your automobiles and your health, why not have an insurance policy that can insure your wealth and retirement savings?
And that is the Index Annuity or Fixed Index Annuity product offered by Lucas Insurance Services.
If you would like to speak with me about what types of protection that a Fixed Index Annuity can offer you in your retirement and how this investment vehicle may work for you please contact us by filling in this form:
