Index Annuities – Enhance Your Retirement Savings with an Indexed Annuity
Categories: Annuity Education, Indexed Annuities
An indexed annuity, also called a fixed indexed annuity, is an insurance contract that provides you with the opportunity to enjoy interest rates that are tied to the performance of a stock market index, such as the S&P 500, without the worry of losing any of your money in a downturn. Your original principal and any credited interest earnings are locked-in, guaranteed by the issuing insurance company and protected from market loss.
Here’s a short video that provides a good overview of indexed annuities and describes how using them can help you avoid market volatility, having a positive impact on your retirement savings:
Retirees and those nearing retirement need to be mindful of protecting their money. While pursuing higher returns by investing directly in the stock market may seem attractive, the safety and peace of mind that an indexed annuity offers cannot be overstated. Indexed annuities give savers protection from loss along with the potential for higher interest earnings than can be achieved with traditional fixed annuities or bank certificates of deposit (CDs).
If you would like to research and compare actual indexed annuity products from dozens of top rated insurance companies, please visit our Fixed Indexed Annuity Rates page.
Another advantage of indexed annuities is that they are tax-deferred. Unlike gains realized directly in the market, you will not pay yearly capital gains taxes with a deferred annuity. You are only responsible for paying taxes on interest earnings from an indexed annuity when you withdraw your funds, which timing you are in complete control of, and can delay for an extended period of time. Many individuals allow their money to compound inside a tax-deferred annuity while they are in a higher tax-bracket, arranging for withdrawals or income payments from their annuity only after they have retired or are in a lower tax-bracket.
For an expanded discussion of indexed annuities, their features and benefits, as well as a description of various interest crediting methodologies, please visit our Fixed Indexed Annuities page.
For those interested in protecting their funds from risk, indexed annuities can enhance already-existing retirement savings methods. An indexed annuity is a safe place for your money, one that has the potential to earn a good interest rate that maximizes your savings for the future.
Because there are so many different product designs and features, sorting through all of the indexed annuity options can seem overwhelming at times. Not to worry, our Annuity Specialists are here to help you through the process, by providing educational resources and patiently answering all of your questions, so that you can find the right indexed annuity that fits your individual needs. Please feel free to give us a call; there are never any fees or charges for our services.