Protecting your retirement savings is a critical piece of the puzzle when planning for your golden years. While mutual funds and individual stocks might make the most sense for strong growth potential, it comes with the risk of market downturns that adversely affect your financial security when you’re no longer working.
Fortunately there are insurance products called index annuities that can help bring safety of principal to your retirement strategy. Index annuities are not an investment product, though in some ways they behave like one. They offer protection from market downturns while providing growth potential from interest credits. With an index annuity, your policy is indexed to market performance without being directly invested in it. This allows the insurance company to pay interest per the policy schedule with no risk of principal loss to you.
Annuities offer this protection because they are less liquid than other retirement financial products. They offer a tax-deferred growth opportunity in exchange for you agreeing to keep your money in the annuity for a period of time. Many annuities do offer access to your money while under contract. A common feature is to allow up to 10% of your account balance to be withdrawn annually penalty-free. Some annuities offer riders or provisions to provide additional liquidity in the case of a terminal illness diagnosis or confinement in a nursing home.
If market-based upside growth potential and protection from market downturns appeals to you, then an index annuity is worth learning more about.
I'm not looking to replace your investment advisor if you're happy with the way your retirement savings are being handled. As an insurance agent, I do offer products that can provide market-based growth potential with no risk to your principal through the use of indexed annuities. If you would like to learn more about how these might fit into your investment portfolio, we should meet to discuss your goals.
I can meet in-person, via the phone, or even via video-conference with my laptop and your internet-connected computer, smartphone or tablet. Simply fill out the form below and I'll be in touch shortly to schedule a time to review your goals, answer your questions, and provide an illustration of how indexed annuities could work for you. Or if you prefer, you can call me directly at 309-696-7933.
By completing the form below, I understand that a licensed agent will reach out to me by email or phone to discuss Medicare Advantage Plans, Medicare Supplement Insurance Plans, Medicare Part D Plans, or other types of insurance products.