Today, with fewer people covered by traditional pension plans, annuities can fill a critical gap in your retirement portfolio by providing a guaranteed income for as long as you live, regardless of how the markets perform. Because annuities are offered by life insurance companies, they can offer protection and guarantees not generally found in other products. Nonetheless, they are one of the most criticized and misunderstood financial products in the marketplace today.
Brian believes that when structured and used properly, annuities can be a strong part of one’s long-term retirement income planning. Their primary benefit is helping offset longevity risk, or the risk of outliving one’s assets. The two types of annuities he sees the most often are Variable Annuities, where the account balance is diversified over a grouping of mutual funds; and Fixed-Indexed annuities, where the annual growth is bench-marked to a stock market index (NASDAQ. S & P 500, NYSE, etc). The latter differs from a traditional fixed annuity, where the interest rates are declared by the insurance company on an annual basis.
Protected Retirement Income
Annuities can be an important part of a diversified retirement portfolio because they can ensure that your retirement income is protected even when there are downturns in the market. But it’s important to remember that the success of any annuity is dependent upon the financial strength of the insurance company that provides it. Brian will help explore and review various annuity offerings, so that together you can select a product that supports your long-term goals without compromising your short-term interests.
All guarantees are subject to the claims paying ability of the insurance company.