At Freedom Path Financial, we understand the importance of having a reliable and steady income stream during retirement. Annuity planning is a crucial part of any comprehensive retirement plan, and we are committed to helping our clients make informed decisions about this important aspect of their financial lives.
Annuities are investment contracts with insurance companies that provide a guaranteed income stream for a specified period of time, usually during retirement. They offer several benefits, including the ability to convert a lump sum of money into a steady stream of income, tax-deferred growth, and the potential for a guaranteed income stream for life.
One of the most popular types of annuities is the fixed index annuity (FIA). These annuities offer the potential for higher returns than traditional fixed annuities by linking the growth of the annuity’s value to an external stock market index, such as the S&P 500. The benefits of a FIA include:
- Potential for higher returns: The value of an FIA is linked to the performance of a stock market index, which means that it has the potential to earn higher returns than traditional fixed annuities.
- Guaranteed minimum interest rate: Even if the stock market index performs poorly, the FIA will still earn a guaranteed minimum interest rate, providing a measure of safety and stability.
- Tax-deferred growth: The growth of the FIA’s value is tax-deferred, meaning that taxes are not due until the money is withdrawn.
- Lifetime income options: Many FIAs offer lifetime income options, which provide a guaranteed income stream for the rest of the annuitant’s life.
At Freedom Path Financial, our team of experienced financial advisors can help you understand the benefits of annuity planning and the advantages of fixed index annuities. We will work with you to create a customized annuity plan that aligns with your retirement goals and provides you with a steady and reliable income stream during your retirement years. We are committed to providing our clients with the education, tools, and resources they need to make informed financial decisions and achieve financial success. Contact us to schedule a consultation and learn more about how annuity planning can benefit you.