First Fidelity Group, Inc.
  • Home
  • Nurses
  • Services
  • About
  • Blog
  • Calculators
  • Events
  • Contact

Blog

How Annuities Can Boost Your Retirement Confidence

6/12/2017

 
Picture
​How confident are you that you will have enough income and assets to support a comfortable and enjoyable retirement? If you’re like many Americans, you may not be completely confident. According to a 2016 study from the Employee Benefit Research Institute, only 21 percent of Americans say they’re “very confident” that they will have enough money to live comfortably through their retirement years.1
 
That lack of confidence could stem from a number of issues. Many workers may still be feeling the effects of the recession of 2008-09. Others may be suffering from the reduction in pension programs offered by employers. And many people could simply be behind on their retirement savings efforts.
Fortunately, there are steps you can take to reduce your financial risk in retirement and boost your confidence. A broad range of tools can help you generate retirement income and provide a stable financial foundation.
 
One such tool is an annuity. While annuities are frequently misunderstood and may not be appropriate for everyone, they can have substantial benefits when used in the right situation. Below are a few tips on how you can use an annuity to boost your retirement confidence:

Annuities and Retirement Confidence
There are many different types of annuities, and each serves a variety of needs and objectives. At their core, however, most annuities are created to generate income. That income can be distributed either through withdrawals from the annuity policy or through what’s called annuitization.
 
In many cases, annuity income is guaranteed for life. It could even be guaranteed for your life and your spouse’s life. That stream of guaranteed income gives you some financial consistency and predictability in retirement, which may alleviate stress and concern and even boost your confidence.

How to Use Annuities to Generate Retirement Income
The type of annuity you use depends on your specific needs and goals. One option is to use an immediate annuity. With an immediate annuity, you contribute a lump sum into the annuity policy. That lump sum is then annuitized, or converted into a guaranteed stream of income based on your age and other factors. You lose access to your original premium, but you receive an income stream that’s guaranteed for life.
 
Other options include deferred annuities, in which your premiums are not annuitized immediately. Instead, your premiums have an opportunity to accumulate. Some annuities are fixed, which means growth comes through the payment of interest each year. Usually, fixed deferred annuities have no risk of loss.
 
There are also variable* deferred annuities. In these annuities, your funds are invested in a range of subaccounts, which are similar to mutual funds. They may offer more growth but also come with some level of risk. Fixed indexed annuities pay interest that’s tied to the performance of investment markets. You get some growth based on market returns but aren’t vulnerable to market risk.
 
Many deferred annuities come with optional benefits called riders that provide guaranteed income for life. For instance, you may be allowed to withdraw a certain percentage of your account value each year. As long as your withdrawal doesn’t exceed the allowed amount, the withdrawal is guaranteed for life. These types of optional benefits may come with additional fees.
 
Ready to explore annuities and how they can boost your retirement confidence? Let’s talk about it. Contact us today at First Fidelity Group to learn more. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.


1https://www.ebri.org/pdf/briefspdf/ebri_ib_422.mar16.rcs.pdf
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
 
Annuities are insurance products backed by the claims-paying ability of the issuing company; they are not FDIC insured; are not obligations or deposits of, and are not guaranteed or underwritten by any bank, savings and loan or credit union or its affiliates; are unrelated to and not a condition of the provision or term of any banking service or activity.

Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged.  Annuities are long-term, tax-deferred vehicles designed for retirement and contain some limitations.

*Investors should consider the investment objectives, risks, charges and expenses of a variable annuity and its underlying investment options. The current prospectus and underlying prospectuses, which are contained in the same document, provide this and other important information. Please contact our Investment Professional or the issuing Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.

16695 - 2017/5/23

Silas Knight link
3/19/2019 03:55:17 pm

It's great to know more about annuities. I love the fact that getting these can help boost your confidence. My wife and I are close to retirement age, so this is good to know.


Comments are closed.

    First Fidelity Group

    With more than 39 years of experience and knowledge, we've seen it all. We understand each client is unique and faces different challenges.

    Archives

    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    October 2019
    August 2019
    June 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017

    Categories

    All
    Assets
    Business Succession Planning
    CARES Act
    College
    COVID
    Death
    Disability
    Emergency Fund
    Estate Planning
    Financial Planning
    GDP
    Insurance
    Long-Term Care
    Managing Medical Expenses
    Milestones
    Pandemic
    Retirement Budget
    Retirement Income Planning
    Retirement Planning
    Social Security
    Stimulus
    Tax Planning
    Thankful
    Thanksgiving
    The Market

    RSS Feed

First Fidelity Group, Inc. 
7041 Canal Blvd.
Suite # 133
New Orleans, LA  70124

​
337.560.1805
info@FFGretire.com
Picture
Site Map
Home
Services
About
Contact
Licensed Insurance Professional. Respond and learn how financial products, including insurance and annuities can positively impact your retirement. This material has been provided by a licensed insurance professional for informational and educational purposes only and is not endorsed or affiliated with the Social Security Administration or any government agency. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
  • Home
  • Nurses
  • Services
  • About
  • Blog
  • Calculators
  • Events
  • Contact