Are they a good fit for you?
What Are Annuities?
Exactly what are annuities? They are insurance contracts that provide regular retirement payments. An annuity can help you grow or protect your retirement income. They can also provide guaranteed income during retirement. By choosing the right annuity, you can save money and earn a reasonable return** at the same time.
Different Types Of Annuities
Fixed Indexed Annuities (FIAs)
FIA payments are determined by an index such as the S&P 500. FSAs, however, protect your money from losses because they do not directly invest in stocks. You link your money to a stock index, not to the stock market itself. When the index goes up, so do your returns. If, however, the FIA index falls, your money does not. Therefore, an FIA, can preserve your principal and earn a reasonable return.** FIAs are an essential part of reaching retirement goals for many retirees.
With fixed annuities, you can protect your money, but at a fixed rate of interest.
Since variable annuities are based on market movements, they carry greater risk. You, therefore, risk losing your principal with variable annuities.
Several Myths About Annuities
There are myths about how annuities are earned. There are some agents who claim certain annuities are not advantageous. Why is that? Brokers make money by managing client dollars in the stock market. Some agents may make money from annuities, but that doesn’t mean they will suggest them. They see it as more profitable to manage money in the market.
Additionally, annuities do not all work the same way. Not all agents offer annuities. Some of these products are market-based.
As a result, if the market crashes, you could lose your principal. MTD Financial works differently. The companies we work with are reputable and always put the client’s needs first without putting their money at risk.
An Annuity That Fits Your Needs
Using a comprehensive approach, we determine whether annuity income is right for you. During our informational seminars in Chicago and the surrounding suburbs, we discuss the differences between annuities and other retirement vehicles. We then discuss your individual retirement strategy.
The following are a few topics we cover:
- What are annuities and what are their benefits?
- How far along are you in planning for retirement?
- How many liquid assets do you have?
- In an emergency, how much cash is available?
- How comfortable are you with risk?
- Is annuity income sufficient to cover expenses?
- All this plus much more
We help clients protect their retirement income at MTD Financial. During retirement, protecting your money is important. Reach out to us to learn more information about “what are annuities”.