Annuities are quickly becoming a staple in the retirement planning field and for good reason. An annuity is simply a contract between you and an insurance company that will pay you a fixed amount of money monthly and or annually for the rest of your life. You can think of them as personal pensions. Here at You Matter Insurance & Financial Group, we work specifically with Fixed Indexed Annuities. We chose this type of annuity because of the stability of the product. Unlike other investments, a Fixed Indexed Annuity has a fixed portion that is not tied to the market conditions. This means that when the stock market goes down, your annuity value does not go down with it. However, if the market goes up, there is a portion that will increase with the markets as well.
It is a very attractive product for that reason, allowing one to participate in market gains while limiting losses to zero, thus providing principal protection and growth all in one product. Annuities are a great option for those who want a secure, guaranteed income in retirement. They are not to be the sole investment for our clients. An annuity should be put in place to provide a guaranteed income and help to increase our overall income in retirement, in combination, or as a part of a diversified portfolio or retirement strategy.
Key Features of Fixed & Indexed Annuities
- Flexible-Premium – Adjustable Premiums As Life Changes
- Ability to Allocate Where The Cash Value Accumulates I.e. Death Benefit Centric Or Cash Value Accumulation Centric
- Participate in Market Gains.
- Interest Rates Are Determined by Market Conditions But Typically Tied To An Index Such As The Dow, S&P 500, Nasdaq, Etc.
- Living Benefits – Some IUL’s May Have Riders To Help Pay for Long Term Care Provisions
- Guaranteed Death Benefit As Long As Premium Minimums Are Met