As an advisor, you have many tools to assist your clients in their retirement planning while diversifying their portfolios. However, one tool that may be underutilized at the moment is the fixed annuity. Fixed annuities, like bonds and CDs, are considered safe money products with additional benefits that may make them a good choice. Fixed annuities might be a great option for those close to retiring and have a lot they want to accomplish and explore in their first few years of retirement. You must assist them in making an appropriate plan since people frequently spend more money during their early retirement years, particularly on hobbies, travel, and other activities. Looking ahead and providing solutions to help your clients meet their savings goals is easier with a safety-oriented product, such as a fixed annuity. You will be able to assist your clients in preserving their current savings while also helping them to continue to grow their money, giving them the freedom and resources to pursue their interests. Some considerations must be made if success is the goal. Fixed annuities offer several guarantees, making them an appealing alternative to other financial products. Most have a guaranteed interest rate, and some guarantee no principal loss, eliminating the interest rate risk associated with the bond portion of retirement portfolios. You probably advise your clients nearing retirement age not to risk their money on market volatility because they won’t have time to recover from a loss. Their money can grow at a fixed rate yearly for the contract’s life with fixed annuities. Several rider options can provide additional protections, such as removing surrender charges if the policy owner’s health changes unexpectedly. These options will best protect your clients’ savings in their final years of employment while they continue to grow and provide them with immediate access to that money. Fixed annuities are tax-deferred investments. This deferment allows your clients to receive tax-free growth for the life of the annuity and any subsequent renewals until they begin making withdrawals. The taxes on the gains are paid once the money is withdrawn from any tax-deferred product. As the advisor, you want to ensure your clients are saving more than their goals to account for any tax or other payments that may be due once they begin using their retirement funds. Fixed annuities, as opposed to variable annuities, have very few fees, allowing your clients to keep more of their money. Most fixed annuities come with a guaranteed interest rate, which can be used to make a steady income like a pension. These payments provide your clients with a consistent income that can last their entire lives, making it easier for them to plan for each retirement stage. Various tools and products will help ensure your clients’ retirement dreams come true. Because of the numerous benefits and guarantees provided by fixed annuities, advisors should consider using them, particularly when planning for the first several years of a person’s post-work life. Consider reaching out to a qualified financial professional if you want to introduce fixed annuities to your clients.
Contact Information:
Email: [email protected]
Phone: 6096581732
