Recent statistics show that over 10,000 baby boomers are retiring every day. Many of them have turned to annuities to provide lifetime income guarantees and safety for their money. What’s more, those planning ahead are looking to the benefits of annuities. In fact, in 2011, over $200 billion of annuities were sold in the United States.
An annuity is an agreement between an individual and an insurance company to provide a specified return on an initial investment. The nice part about this is you’re guaranteed a return on your principal, and the interest you earn can make your annuity a nice retirement tool.
Fixed annuities offer a guaranteed return that grows while the tax is deferred.
An indexed annuity doesn’t have a guaranteed interest, but is tied to the returns of a leading index such as the S&P 500. If the stock market does well, you could actually earn a better return with an indexed annuity than you could with a fixed annuity. But if the market tanks, well, not so good.
With either type, your initial principal is always guaranteed, and that’s one reason so many of our clients like it.
Which is Better For You? Let’s Find Out.
At Dryfoos, our trained annuity professionals can help you weigh and measure all the advantages and disadvantages of one type of annuity against another. For more information on these and other financial tools for your retirement or savings, call or email us, or send in the quote request form on this page. We’ve got all kinds of exciting financial ideas and strategies we can’t wait to tell you about.