September 27, 2019

Is A Fixed Income Annuity Right for You?

In today’s low-interest-rate environment, there are fewer fixed income alternatives for retirees seeking income. With rates on traditional staples such as CDs and money market accounts at or near all-time lows. Fixed-income annuities are an alternative to consider for retirees seeking income and safety. The issuing insurance companies back the claims-paying ability of all annuities. Once thought of as only a standalone retirement income solution, a fixed-income annuity is now commonly recognized as one of many components of a retirement portfolio.  

Here’s why:

  • Annuities protect during times of market decreases; withdraw from the annuity to avoid liquidating other accounts at low share prices.
  • Fixed-income annuities purchase a one-time payment or period purchases. Contracts are purchased directly from the insurance company or a financial institution.
  • Fixed-income annuities can be immediate, meaning payments commence at once or deferred with payments starting at a later date. Payment options can vary, including monthly or quarterly.

The advantages of a fixed income annuity include:

  • A guaranteed stream of lifetime income now or in the future.
  • Also can be a way to add a fixed-income component to your retirement portfolio.
  • You can structure a fixed-income annuity to provide income for your remaining life and the life of your spouse.
  • As a result, the insurance company guarantees the payments.
  • They can provide pension-like payments for those with no actual pension.
  • Therefore you won’t outlive the payments.

Not all fixed income annuities are created equal or are all the providers of these products. We can help you decide if a fixed income annuity is right for your situation, and if so, which product is the best for your unique situation. Why not give me a call to discuss your financial situation and to see if a fixed income annuity makes sense for you?

Additional Disclosure

Withdrawals are subject to ordinary income tax and, if taken before age 59 ½, a 10% federal penalty.  They will reduce the contract value and other benefits under the contract.  Withdrawals that exceed any free withdrawal amount during the surrender period will be subject to a surrender charge.

Additional Disclosure

These are the opinions of the author and not necessarily those of the Registered Investment Adviser or Broker/Dealer. They are for informational purposes only. Do not be construe or act upon these opinions as individualized investment advice.
Zara Financial Group. specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. Whether you have a retirement nest egg of five million dollars or $50,000, we can help you make sure it works as hard and as smart as you did in earning and saving it. We offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!

The information and opinions expressed herein are obtained from sources believed to be reliable; however, no representation is made as to, and no responsibility or liability is accepted for, the accuracy or completeness of the information. The information is provided as general information and is not intended to be specific financial guidance. The information is subject to change without notice. Before making financial decisions, you should consult a financial, legal or tax professional. Providing personal information may result in contact from an insurance agent. Unauthorized use is prohibited.
2706 Alt 19 N Suite #202 Palm harbor Fl 34683
© 2021 | Built, Powered & Developed by: Simplicity Group
Disclosure |Privacy Policy |Terms & Conditions