Annuities For Retirement
Learn how annuities compare to IRAs and 401(k)s — Contact Mundt & Associates to see what is right for your retirement.
Annuity For Retirement
Planning for retirement can be a stressful process. There are options you might not be aware of, though, that could make your retirement strategy easier to understand and give you greater confidence in it. An annuity for retirement may be the best way to protect your principal and interest, while also offering a reasonable rate of return.** Our primary objective is to help clients identify their retirement income options and improve their retirement strategy.
Fixed Indexed Annuity For Retirement
One kind of annuity contract is a fixed indexed annuity (FIA). FIAs provide guaranteed* protection and indexed interest at a reasonable rate.** Your interest rate will increase based on the performance of a market index, enabling you to earn higher returns** when the index is up. But if the index drops, your FIA won’t lose value. It’s an important distinction; an FIA is not an investment. Even if the market crashes, the money in your annuity is safe.*
FIAs Vs. Retirement Plan Accounts
Retirement plan accounts like IRAs and 401(k)s differ from FIAs significantly. FIAs may provide more flexibility than retirement accounts, such as:
- Protection in the event of a market drop
- No contribution limits on your FIA
- Your money grows tax-deferred, meaning you won’t pay taxes on it until you withdraw it
- You could potentially “roll over” the money from your 401(k) or IRA into an FIA instead
Annuities and Taxes
Interest earned on your annuity is tax-deferred. In contrast to retirement plan accounts, you only pay taxes on the money when you take it out. There might be more tax benefits available. For instance, you may be able to transfer funds from your retirement account into an annuity to defer taxes. This may be possible if you received a lump sum payment from an employer-issued 401(1k). However, you should discuss issues like these with a qualified tax advisor.
Are you thinking about purchasing in an annuity for retirement?
Get in touch with us to learn more. Attend one of our informative seminar events or set up a private meeting to talk about your situation and whether an FIA is the right option for you.
