Annuities 101

How To Use Annuities for Retirement

Many retirees do not know that an annuity, like an FIA, may offer a reasonable rate of return**. In addition, FIA’s protect the initial money you put into it. So, if the market is down, your money will not drop as a result of the market. Essentially, FIA’s may serve an important purpose in your overall retirement strategy: protection. But, it may be only a piece of the puzzle.

With so many different options to choose from it’s hard to know which is the best for you. To help assist you in making a decision, we look at the whole picture. Additionally, we will ask questions about your goals. We also take the time to educate you. Do you know what your current fees are? Are you comfortable with your current rate of return? Have you thought about potential risks? Our approach will help you discover the right retirement strategy for you.

Get To Know

Your Retirement Annuity Options

The easiest approach to learning your annuity options is to get educated about how annuities work. Particularly when it comes to this, there are numerous benefits open to you. But, not all retirement strategies will include this sort of product, so it is important to learn more. An FIA has many various details and available benefits, depending upon which policy you choose. For example, you may be able to have a lifetime income with an optional income rider. In this case, your income may increase as your expenses increase. Additionally, FIAs have numerous options for your beneficiaries and more.

Benefits Of An FIA

Fixed index annuities (FIAs) are not invested directly in the stock market. Instead, a fixed index annuity is a contract between you and an insurance company that could yield potential interest through an index. An added benefit of fixed index annuities for retirement is that your money goes in, and the insurance company issuing the annuity agrees to keep your hard-earned money safe from market loss. Additionally, certain types of fixed index annuities allow for a reasonable rate of return** when the market is up. You also have options to when you can begin withdrawing your income payments. Some retirees choose a shorter-term; others prefer to leave their money in for the long haul and let the annuity grow. Because of these circumstances, an FIA may be the best annuity strategy for retirement for some retirees.

If your traditional retirement investments drop in value, so does your retirement nest egg. But, with an FIA, this doesn’t happen. Alternatively, your FIA principal remains steady, no matter what happens the market ups or downs. This is because your money isn’t directly invested into the stock market. Rather, the insurance company links your account with an index. When that index is up, you could see an improvement in your rate of return. If the index is down, however, you don’t risk a loss. The insurance company affording the annuity is the one who takes the risk. At Safe Harbor Retirement Solutions, our main goal is to assist you to protect what you worked so hard for.

Of course, several types of investments come with risks. Some carry a higher risk than others do. But, with an FIA, you can get an income payment every month (or year) for the remainder of your life. This payment is not influenced by the market and therefore you do not hold the risk of losing your principal due to market volatility. Because more and more people are living well, life expectancy is on the rise. Now, people can reasonably assume to live into their 90’s or even past 100. Knowing this, we believe you need a strategy that guarantees a lifetime income. Income for your entire life* is a basic need in retirement. An FIA may be able to provide the options you’re looking for to address this need. FIA’s are a possibility worth looking into, especially if you want the safety it affords for your money.

How much you earn with an annuity will fluctuate, based on several different factors. First, each insurance company offers various benefits, products, rates, and more. Depending on which one you pick, it may have different terms and conditions connected with it. Additionally, rates of each product vary as the industry shifts. At Safe Harbor Financial Solutions, we only work with top-rated insurance companies and products.  We look for outstanding reputations and quality financial opportunities for our clients.

couple walking in park with their pet bulldog benefits of a fixed indexed annuity white bear lake mn

Get Educated About

Annuity Retirement Income

The choices you make regarding your retirement are important to your future. At Safe Harbor Retirement Solutions, we believe being educated on how to plan for your retirement needs is essential. That is exactly why Safe Harbor Retirement Solutions holds continuing education seminars for our clients and the surrounding community that focus on topics like retirement income strategies and life insurance. At our events, retirees and pre-retirees can learn about how the market works.

Feel free to schedule a one-on-one, no-obligation meeting with an annuity expert to talk about your specific retirement needs. During these meetings, we will discuss many factors, like:

  • What stage of retirement are you in?
  • What types of assets do you currently have?
  • What is your current risk assessment?
  • Annuity income vs potential expenses
  • And much much more!

Once we get to know your financial situation and your retirement goals, we can assist you in deciding which varieties of insurance products or services fit your retirement strategy.

Could An Annuity Be

The Right Strategy For Your Retirement?

With several annuity options to pick from, how do you know which choice is the right one for you? Safe Harbor Retirement Solutions is here to help. We take the time to learn about your needs and goals for retirement. We also make it a priority to provide our clients education and to assist them in making an informed decision regarding their retirement.

Call Us Today if You Are Interested in Hearing how an annuity could be the right retirement strategy

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