In the current rather crazy market conditions, Index Annuities become more and more attractive. I realize that annuities have changed dramatically in the past decade and they are confusing and can be complex. The simple reason that Index Annuities are more attractive, especially as you approach and enjoy your retirement years, is SAFETY. I will touch on the general types of annuities, but focus on the Index Annuity as a safe alternative to Mutual Funds and a Stock Portfolio.
A Fixed Annuity is a good alternative to a CD, a set interest rate for a period of time.
An Immediate Annuity is like making a pension for yourself, creating income for life.
A Variable Annuity is a way of investing in the market, typically in mutual funds but through an insurance company. This type of annuity leaves the risk with the you, policyowner.
Index Annuities are a great alternative to putting your money into the market. You get to participate in the gains but you are protected from any losses when the market drops. Risk is assumed by the insurance company in these products, not by you, the policyowner. These are the products that have much appeal for keeping your 401(k), IRA, and/or your Mutual Fund monies safe and growing in your retirement years.
There is no question that you have more potential for big returns if you are investing directly in the market. Potential is the key word here. You also have more potential for loss when you invest directly in the market. As you get closer to retirement, it is nice to know that your hard earned money is SAFE!!
Index Annuities are a great way to have SAFE GROWTH for your money. And interestingly, Index Annuities have outperformed the market over the past 10 years. Safety goes a long way in protecting your assets!!
If you would like to learn more about annuities and find out if there is a product that fits your needs, please contact Elise at (208)590-2606 to schedule your confidential needs assessment.