Consider fixed index annuities in retirement
Index annuities promise higher interests and fewer risks than fixed annuities. They are an option that more and more Americans started considering for their retirement plan.
“Imagine sitting at a blackjack table in your favorite casino and the dealer says, ‘At my table, you can never lose! If I win, we push, and if you win, you win at least half of your bet!'” says Mike Zaino, president and CEO of TZG Financial in Charlotte, NC. “How long would you sit at that table? That’s how fixed index annuities (FIAs) work.”
“Your money mirrors an index up to a cap (and in some instances, there is NO cap) when the market experiences gains, but your principal is protected from the downside volatility with a zero floor. If you like the idea of never losing a penny of your hard-earned retirement dollars, while still having the upside potential of participating in market gains and being able to name your beneficiaries, a fixed index annuity is a great choice. Plus, an annuity is the only financial product that can guarantee you a lifetime of income, no matter how long you live.”
“As you approach retirement, you’ll want to transition your heavily weighted stock portfolio toward less risky, more guaranteed income sources such as those offered by fixed indexed annuities,” recommends Saranovitz. “FIAs coupled with a lower percentage of globally diversified stocks in your portfolio blend growth and risk reduction for maximum retirement portfolio sustainability.”
