How do you get your local news these days? I don’t know about you, but I don’t have the local, town paper delivered to my door anymore. I find I get most of my local news online these days, at sites such as TheAlternativePress.com.
So it was fun last week to be reading The Alternative Press and see an article on Sage Financial Partners. The article was called “Safe-Money Solutions, and a Sigh of Relief.” If you’d like to check it out, you can find it at: http://www.thealternativepress.com/articles/sage-financial-partners-offer-safe-money-solution
The article talks about how to keep your nest egg safe from loss, but still be able to grow it into an income stream that pays you for life. One of the financial tools used to accomplish this goal is a fixed index annuity.
For years retirement options were limited to either choosing the safe route, one that guaranteed your principal with a minimal interest rate, or a risky investment route that offered the possibility of high yields. Fixed index annuities combine the best of both worlds. That’s one reason why sales of fixed index annuities last year topped $30 billion.
Consider 4 top benefits of this investment option.
1.) It’s safe. The account balance of a fixed index annuity is guaranteed to never go down regardless of how the market performs. Conversely, other methods of investment, including mutual funds and securities, carry the risk of losing what you’ve invested.
2.) It has growth potential. Index annuities offer the potential for increased interest earnings through stock market-linked interest credits. You get to participate in market gains without the risk of losing your investment. Indexing refers to an investment method that follows certain indices, such as the S&P 500. However, because you don’t invest directly in the stock market, you avoid market risk.
3.) Earnings and premiums are tax deferred. The money you invest in your index annuity and the interest it earns is tax deferred until you start withdrawing. In fact, a portion of your final withdrawals will be considered a return of your premium, decreasing the amount of income tax you pay on your annuity payments. Additionally, the interest compounds, allowing you to increase your balance over a shorter period of time with money you would otherwise be paying taxes on.
4.) Lifetime income is guaranteed. Since fixed index annuities guarantee your principal, you are assured an income stream for the rest of your life. Annuity plans differ and payment structure can be customized to meet your financial needs. Additionally, many contracts allow for annual penalty-free withdrawals of up to 10 percent of the total annuity value, and some offer an up-front bonus of 10% or more.
Like any investment, fixed index annuities are not for everyone. But for the right person, a fixed index annuity can be a powerful retirement planning tool. Contact us at http://sagefinancialpartners.
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