Why Invest in a Fixed Indexed Annuity?
What Is An Annuity
An annuity is a legal contract created between an insurance company and an individual. Under this agreement the individual would be given the ability to earn compounding interest and a return from the investments made during a period of time or payment of a lump-sum amount.
What Makes A Fixed Index Annuity The Right Choice
What makes a fixed indexed annuity unique and so powerful is the fact that your money can also participate in the gains happening in the index for upside potential a place where real significant grow can be the most beneficial on your investment. It’s the right choice, the fixed indexed annuity also provides a solid guarantee that you can never lose money based on a down year in the performance of the index. Your principal balance remains intact and secure, safely waiting to make more money each year the index performs well, while never losing you money when the index does not.
Investing 50-70% of your retirement savings in a fixed indexed annuity (depending on your age) is a wiser method of building long term legacy and staying power in your retirement income that is guaranteed for the rest of your life and the rest of your spouse’s life without any reduction in monthly income. Fixed indexed annuities are a far better, smarter and safer way to invest versus leaving 90-100% of your money at risk working in the stock market where there are no guarantees.What would happen in the next market crash?
FIXED INDEX ANNUITIES
Fixed Index Annuities are excellent investment vehicles as they do allow you to enjoy the benefits of market linked interest but without being affected by market risks. These annuities are also referred to as equity annuities and are investments that are insured and which are going to be tied to the interest rate which in turn are affected by the way that the main stock market index grows.
With the purchase of fixed indexed annuities you will be able to have a guaranteed income that will come in for the rest of your life and your spouse’s life if you are married and start the policy to cover both your retirement incomes, in a way you would be creating your own guaranteed pensions on the money invested in the annuity. There are many different annuity payments that you can choose and the limit that you can pull out without penalty is roughly 10% per year.
Fixed Indexed Annuities give you plenty flexibility and is a great option during an IRA rollover or 401k rollover.
With fixed indexed annuities you have a shot at guaranteed income for life on your investment, that can still make money based on the performance of the market index, however, even with those downturns in the market exist, you wouldn’t lose principal. The fixed indexed annuity policy guarantees it!
A fixed index annuity links the annuity appreciation rate of your annuity account balance to a stock market index- the income generated by the underlying bond portfolio owned by the annuity contract is invested in market options.
Eliminate the cost of managing a mutual fund in your sub-account and you should produce better returns by simply tracking the market. In reality, investing in an index annuity is far better and less risky than leaving your money invested in a 401K, IRA or Mutual Fund account. We all suffered the economic downturn in 2008 and 2009.
Losing 30-60% of our retirement savings as a nation was a big blow to people going into retirement, planning for retirement and already in retirement. The moment I realized what was happening around me, I began to do research as to the causes and the solutions for the effects that I had suffered, my parents had been hit with in their retirement and my friends were all around me losing money as well. You were probably hit in 2008 and 2009 as well, potentially losing 50% or more of your retirement nest egg. There had to be a better way moving forward, to save for retirement, invest in retirement and protect our investment.
There is and it’s called the fixed indexed annuity.
