from Your Old 401k’s, IRA’s and Lump Sum Pension Rollovers
Millions of Americans are faced every year with what to do with their old 401k’s, IRA’s and lump sum pension rollovers.
What many people don’t know they can do is roll over or transfer these accounts into a Fixed Index Annuity and create a guaranteed lifetime pension. Better yet, there is no tax consequence or penalty when you move your qualified retirement money into a fixed index annuity.
Why are millions of future retirees creating guaranteed pensions via Fixed Index Annuities?
Well, 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.
Here are 4 big reasons people are moving record retirement assets into Fixed Index Annuities:
- They’re 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.
- They offer 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.
- 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.
- 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.
Call or email today to see how a fixed index annuity can help you achieve your guaranteed retirement income goals. After all, who is going to replace your company paychecks in retirement if it’s not you?
* Annuities are designed for long term financial planning and are not designed for short term investment strategies. Guarantee periods or annuity payments may be subject to restrictions, fees and surrender charges as described in the annuity contract. Guarantees are backed by the financial strength and claims paying ability of the issuing insurance company.