Should You Consider FIAs For Retirement Income?

The Current State of Planned Income

You’ve worked hard your entire life to prepare for this day: retirement.

Although you feel relieved, eager to begin your new life, and maybe nostalgic over your accomplishments thus far—you’re also feeling grave uncertainty.

You’re wondering where you will get more income to pay bills and unexpected expenses. Not to mention you want to travel, maintain good healthcare, and still provide for your family. And at a time like this? During what is perceived as a similar financial crisis that occurred between 2007 and 2008.

There’s a lot to consider right now. 

What’s for certain is this: the check you’ve received year after year will soon come to a halt. And as a retiree, you’re going to need an investment solution that takes the place of this paycheck. In order to have the retirement of your dreams, you need an income plan that considers all your wants and needs. Planning your income after retirement is an important step to establishing a fulfilling life after you retire. 

Sure, you may become more cautious with your retirement savings as you begin. You’re planning for a future, and like most things, unexpected occurrences happen that put us in financial binds.

Family members get life-altering health diagnoses; inflations could occur like back in the ‘70s. Not to mention, you may outlive your retirement savings. Then what? 

In the ‘80s and ‘90s, bond interest rates were much higher. But today? Not so much. And how about the tried and true 60/40 investment strategy? Even that is waning. Since November 2019, the S&P hit 19 and reached an all-time high. Combine this with the complicated history of the U.S. stock market: how can this continue much longer?

But we can expect a change soon. Since the rock button hit in 2009, stock indexes have increased gradually. With this in mind, there’s a possibility we’ll see a 10% – 20% correction which approximately occurs every decade or so. But for now, where can you go? What income plan can you turn to?

Fixed Indexed Annuities (FIAs): The New Now 

Retirees everywhere are turning to Fixed Indexed Annuities (FIAs) to receive a successful retirement plan that can give them the life of their dreams. With today’s low interest and an unsteady economy, Fixed Indexed Annuities are becoming the surest solution to invest in. 

Reputable insurance companies have shifted gears to new investment plans—solutions that are free from market risk while still offering an honest return. Retirees need an income plan that provides refuge from the unprecedented instances of life and stock crashes. And with bonds no longer an effective trusted means to save, FIAs can provide the lifestyle retirees deserve. 

The Benefits of FIAs

Fixed annuities are projected to witness growth in the upcoming years. What retirees receive from FIAs is a sense of security in such an uncertain world.

  • You will never outlive your savings
  • Your savings are not affected by the stock market’s losses
  • Your established 401k can be used to provide additional financial security and income
  • Your savings will grow tax-deferred

Unlike T-bills, CDs, and FAs, FIAs provide returns based on the involvement in the stock market. This means many high returns in comparison to older investment plans. 

Within an FIA, you participate in market returns since FIAs are continuously linked to an index or multiple indexes. In turn, the investor gains credited interest to their account by the insurance company that’s monitoring the increase of an index, or index.

With that in mind, if the index or indexes drop below zero within the year of monitoring, since they “live” inside an insurance product, the client is not given a negative return. Instead, you will receive 0% interest that year. 

Ever heard of the saying, “zero is your hero”? This can be very true when it comes to the distribution stage of your life cycle. This is because you have less time to recover from sudden losses in your account compared to your 40s or 50s.

Create a Dream Retirement With a Stress-Free Income Plan

For over 40 years, we have helped retirees live the life they’ve always dreamed of after retirement. Even in a world of uncertainty, we promise to provide you with the resources, support, and everything else you need to feel stable. We work with you to understand your financial goals and create a plan that is right for you while teaching you about financial growth possibilities. We provide confidence, assurance, and strategies to ensure you never outlive your savings and can go forth for the rest of your life without any worries. What are you waiting for?

Comparing Over 1,000 Savings Plans in Minutes So You Don’t Have To. 

Our unique, proprietary software can draw from 10,000+ annuity offers to get you the best rates in minutes. Receive saving plan options from top Insurance companies and agents for a steady income stream after you retire. Whether you need the income now, in 60 days, 6 months,1 year, or beyond—no longer worry about outliving your savings.

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