Building Confidence in Retirement Planning
Retirement planning with an annuity means rethinking your portfolio—it’s a shift from the saving strategies you’ve relied on to something built for stability and security. Whether you’re aiming to reduce risk or craft a safer allocation, it’s a big decision that deserves careful thought.
Fixed indexed annuities are one option, but it’s worth zooming out and considering the full menu of choices. Taking a broader view empowers individuals to confidently navigate their options and make decisions that truly fit their goals.
Here’s a quick guide to safe money strategies:
Cash: The simplest step is moving a portion of assets into a liquid account, like a money market fund. It’s fully accessible and serves as a secure placeholder while considering other options.
CDs: Certificates of deposit provide fixed interest rates and FDIC insurance, though they lack liquidity and can generate taxable income outside an IRA.
Bonds: These offer consistent interest payments and are a traditional safe allocation. However, they carry interest rate risk if sold prematurely.
Fixed Annuities: These operate similarly to bonds but with added security from insurance company reserves. They offer guaranteed interest, tax deferral, and limited withdrawal flexibility.
Fixed Indexed Annuities: These combine the stability of fixed annuities with potential growth linked to an external market index. While more complex, they can provide a steady income stream throughout retirement and may include an enhanced benefit rider.1
Each option carries unique advantages in terms of liquidity, timing, and outcomes, and I believe it's essential to approach financial planning with thoroughness and clarity to ensure choices that align with individual goals.
Curious about maximizing your retirement strategies? Take the next step by calculating your financial independence number, exploring your options, and designing a personalized plan that reflects your unique goals and vision for the future. Schedule a free consultation to get started.
1 An enhanced benefit rider is an optional feature added to an annuity that provides extra benefits, such as increased income, long-term care support, or death benefits, tailored to individual needs.
The information provided is for informational purposes only and should not be considered financial, investment, or legal advice.