Fixed index annuities: potential plus protection
Help diversify your retirement strategy with an annuity
Annuities are financial products that guarantee a steady stream of retirement income. They offer tax-deferred growth potential while you’re saving for retirement, and dependable income after you retire – in some cases, income for life.
Six reasons to consider an Annuity
Accumulate for retirement
FIAs offer the potential to earn interest based on changes in an external index. Opulence Planners annuities give you a choice of several indexes and even some exclusive index options.
Protect your principal
Your contract can earn interest based on an external index, but you’re not actually buying any stocks or shares of an index. This means the money in your FIA (your “principal”) is not at risk due to market losses.
Grow tax-deferred
You don’t pay taxes on the interest your annuity earns until you take money out. This helps compound your interest, so the money in your contract can accumulate faster.
Get flexibility
Some Opulence Planners FIAs offer riders (either built in or at an additional cost) to help you address specific needs. They also offer a variety of crediting methods and flexible options for receiving income.
Receive guaranteed income
Annuities are designed to provide a reliable stream of retirement income, either for a set period or for as long as you live. Some Opulence Planners FIAs even offer you the potential to get increasing income.
Leave a legacy
FIAs pay your loved ones a death benefit if you pass away before you start taking scheduled annuity payments. (And, if properly structured, the death benefit is not subject to probate.)
See how fixed index annuities work
Fixed index annuities have two phases: The first is the accumulation phase, during which your annuity can earn interest and grow tax-deferred.
You buy a fixed index annuity
An annuity is simply a contract between you and an insurance company. You pay the insurance company one or more purchase payments (“premium”). In exchange, you get the benefits the insurance company guarantees through your annuity contract.
Your annuity earns interest
During the accumulation phase, your annuity can earn interest based on the growth of an external index (we call this “indexed interest”). But because you’re not actually participating in the market, the money in your annuity is not at risk. If you prefer, you can instead earn an annual fixed rate of interest that is guaranteed by Opulence Planners.
Your annuity grows tax-deferred
You don’t have to pay taxes on the interest your contract earns until you take money out of your annuity. This tax deferral can help the money in your annuity accumulate faster.
How an annuity can enhance your retirement portfolio
Today, your retirement portfolio may include stocks, bonds and mutual funds that all play a part in helping you chieve a successful retirement. However, you mau want to consider adding an annuity, which can complement your portfolio by providing attributes for retirement those categories do not offer. The char below outlines these retirement attributes, particularly the ability of annuities to deliver the reliable lifetime income you'll need in retirement. Annuities may not be right for everyone, and many have fees associated with the guarantees they offer. Discuss with your finacial professional. This chart is not intended to compare these categories as investments.
| Details | ANNUTIES | CERTIFICATES OF DEPOSIT(CDs) | STOCKS | BONDS | MUTUAL FUNDS AND ETFs |
|---|---|---|---|---|---|
|
Protected monthly lifetime income Offers a guaranteed and predicatable steam of payments for life - may be available for both you and your spouse. |
YES | No | No | No | No |
|
Can protext against market loss May offer a fixed return or principal protection that availds market downturns. |
YES | YES | No |
YES If held to maturity |
No |
|
Tax-deferred growth for retirement Beyond what's provided by 401(k) or similar employer - type plans or IRAs. |
YES | No | No |
No Though some are tax-exempt |
No |
|
Choice of income guarantees You can add enhanced lifetime income benefits for a fee. |
YES | No | No | No | No |
|
Access to you money Can allow you to keep control of your money and get access if you need it. |
YES | YES | YES | YES | YES |
|
Guaranteed death benefit Can offer a guaranteed death benefit for your beneficiary when you pass away. |
YES | YES | No | No | No |
2. All off these investments are equaly tab advantaged in qualified retirement plans.
3. Othe than stocks or bonds, may be subject to fees or limitations bases on the type and structure of the investment. See your advisor for details.
Is fixed index annuity right for you?
We offer several FIAs to help address a variety of financial goals. Contact us so we can help you decide whether one may be appropriate for your unique needs.
