Enhance Your Retirement Savings with an Indexed Annuity

Nothing beats traditional defined contribution plans like 401(k)s and IRAs when saving for retirement. If you diligently contribute to these accounts during your working life you should have a significant nest egg once you reach retirement. But what if you’ve maxed out your contributions to these accounts for the year? Do you have any other safe saving options that can yield higher-than average returns? Sure, there are bank savings accounts or certificates of deposit, but these generally offer low interest rates. If you have a lump sum that you’d like to put to work earning a competitive interest rate, then an indexed annuity might be just what you're looking for.

An indexed annuity, also called an equity-indexed annuity or a fixed-indexed annuity, is not an investment product; it is an insurance contract. With an indexed annuity, you get the opportunity to enjoy interest rates that are tied to the growth of a stock market index, such as the S&P 500, without experiencing any of the fear of losing your money in a downturn. If the market index is performing poorly over the term of your contract, a guaranteed minimum rate of return is paid on your indexed annuity. You are able to earn interest up to a certain percentage, which is known as a cap. These interest earnings and the original principal are guaranteed by the issuing insurance company and protected from market loss. Retirees and those near to retiring are most concerned with protecting their money. While it may seem more attractive for these people to shoot for the highest returns possible by investing directly in the stock market, the safety and peace of mind that an indexed annuity offers can make up for these potentially higher gains. An indexed annuity gives savers protection from loss along with impressive interest earnings.

Another bonus to indexed annuities is that they are also tax-deferred. Unlike gains earned directly in the market, you will not pay yearly capital gains taxes with an annuity. You are only responsible for paying taxes on interest earnings from an indexed annuity when you withdraw money from the annuity.

For those interested in protecting their funds from risk, an indexed annuity can enhance already-existing retirement savings methods. An indexed annuity is a safe place for your money, one that earns excellent returns and maximizes your savings for the future.

Our Annuity Specialists can help you choose the indexed annuity product that fits your needs. Please call our Specialists at 1-800-239-0356 to start learning more about an indexed annuity for you.

Interest is based on current rates and subject to change without notice.

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