is an

Annuity Income

Right for you?

Could annuity income be right for you? Many factors affect if an annuity may be a good choice in your retirement plan. First, remember that each retiree has a different set of needs. You must take time to learn if a certain product will fit your situation. For example, how much you have in total assets will impact whether or not an annuity may suit you. If there is an emergency, do you have access to other cash that is not in an annuity?

In addition, what are your income needs? An annuity needs to be able to provide you with enough income to live on and pay your retirement living expenses. Also, figure out what your goals are in retirement. Fixed index annuities hold on to your initial investment so that it isn’t subject to a drop in the stock market. In addition, some annuities may also provide a reasonable rate of return.*

What are your annuity income options?

Happy Grandparents Painting With Granddaughter Annuity Income San Diego CA

Best Annuity Plan for Retirement Income

Seek an education to learn about annuities, especially fixed index annuities (FIAs). Annuity income may be great for some retirees, and not a good solution for others. Remember, FIAs do, indeed protect your principal. Also, they may potentially provide a reasonable rate of return* on your money. However, some retirees may seek an investment that has a higher risk. Or, their situation may simply not warrant an FIA. At our educational seminars, we can help you learn more about the choices that may be available for you.

Potential FIA Benefits

An FIA holds you and an insurance company in a contract together. You contribute money and the insurance company agrees to certain terms. For example, one benefit could be a lifetime income. You could choose to have that income begin after several years. Or, you may decide to not take payments until the annuity has potentially grown. There are positives for some retirees in using an FIA as part of their retirement plan. This protection piece is often a valuable benefit for many in retirement.

What About The Stock Market?

FIAs do not drop below your principal balance, even if the stock market does. Because insurance companies do not link your FIA directly to the market, you don’t have this risk. However, the insurance company may also have options of a minimum interest rate for you. Basically, the insurance company takes the risk and therefore, your interest may be lower than the stock market. On the plus side, you don’t have to bear the risk of the market with an FIA. For some clients, a balance of proper protection, as well as some risk, might be the solution. We believe in building a foundation first. An FIA may be a piece of that foundation for some retirees.

Income You Can Count On

Some financial vehicles carry built-in risk. Certainly, some investments are riskier than others. With an FIA, your income may payout to you for your entire lifetime. Just think about how many retirement years you may have ahead of you. More and more people are living well into their 90’s. And, with new and healthier lifestyles, more people are living past 100 years old as well. Because of this, some retirees worry about their money lasting throughout their lifetime. An FIA may be an option to consider if you want to secure your principal. A flow of income for the rest of your life may be appealing to some people. And, with so many options to choose from, there may be an FIA type that works for you.

Interest Rate & Annuity Income

What you get in interest from an annuity will vary, depending upon a few things. First, different insurance companies have different products. Each of these has its own set of rules and benefits. The rate you get could change from one annuity product to the next. At Marathon Group Financial, we work with insurance companies that consistently rank high and have solid business models. Excellent reputation matters as well. A low-risk product may mean you see a lower interest rate. However, it may offer more protection as well. There is commonly a trade-off when it comes to retirement financial products. Reach out to us today to learn more about what your choices and potential interest rates may be.

Grandparents Playing Chess with Grandchild Annuity Income

*Reasonable rate of return over time. 

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