Investing In Annuities | Planning Your Retirement With Fixed Annuities

This is a question adults ask frequently of themselves, yet its answer isn’t always clear. Retirement years seem far off and making ends meet from day to day seem to present obstacles constantly. Even when you are laser focused on your goal, more obstacles appear making planning for your retirement more difficult. A great plan today may erode your purchasing power tomorrow. Inflation eats away your potential purchasing power and Social Security a main source of todays retirees may indeed only provide minor income by retirement age. So how do you handle this dilemma?

Fixed annuities issued by reputable insurance companies provide long term investment vehicles, with tax deferred advantages, insurance company backed guarantees, flexibility to access your accounts and security of knowing you have invested your hard earned dollars with a reputable company.

The ability to defer taxes on earnings is a significant advantage in log-term investments. Unlike many other long term investments fixed annuities allow your assets to grow in two ways. Your premium is earning interest and your interest earnings are earning interest instead of being taxed and reduced. Over time the magic of compounding may help accelerate you assets more so than taxable vehicles with the same interest rate.

An example, invest $15,000.00 in a tax deferred annuity at 5% and in ten years that sum will grow to %24.433.00 vs. $21,057.00 in a taxed instrument. Spread out over more time and difference is very significant.

Many Fixed annuities offer premium rate guarantees and minimum interest rate guarantees. You premium will never fall below your initial investment and the company at purchase sets your minimum interest rate. These guarantees provide peace of mind even in the toughest of markets.

Payout structures offer a variety of options. This is an important feature. No one can predict how log they will live and you wouldn’t want to outlive your retirement sources. Accessing your money in the event of unforeseen life events is included as well.

Fixed annuities offer many advantages for any investor and in our assessment be a part of your retirement planning. As always check, research and ask specific questions about the fixed annuity you plan to purchase before you buy.  Present hypothetical situations to your broker or agent. You are entitled to know exactly how the fixed annuity will react in every situation, every circumstance and every significant event in your life.