Annuities Can Be a Powerful Retirement Tool
There are many different ways to think about retirement, and your dreams may not appear on anyone’s bucket list but your own. No matter how you envision retirement, having the freedom to live life your way will depend, at least in part, on having a secure source of reliable income. Annuities are one of the few sources of retirement income that can guarantee income for life.
There are many different types of annuities to help you accomplish your retirement goals. Whether it be for accumulating assets for retirement, creating a guaranteed income stream for life, or transferring assets into a retirement plan, Straight Forward Life & Annuity can find the right options for you. We have access to hundreds of different annuities that can match your retirement strategy need.
The new definition of retirement, with all of its possibilities, does not happen automatically. Many of the issues naturally associated with aging and retirement, such as poor health and the need to provide income, still do exist. Enjoying the retirement you have earned and so richly deserve involves careful consideration of your goals and strategic planning to hedge against potential problems that threaten to interfere with your security and well-being during this time.
The Different Types of Annuities
Fixed Annuities
Fixed annuities are sometimes called Multi-Year Guaranteed Annuities or MYGA's for short. These are usually term specific annuities (2yr, 3yr, 5yr, etc) with a guaranteed interest rate. The interest rates are often very competitive and will generally be more than you can find in a Certificate of Deposit at your local bank. MYGA's can be a great option for cash and other savings that you do not anticipate needing in the short term and would like to keep pace with inflation, especially if you are over 59 1/2. The insurance company guarantees the value of your principal and the interest earned. Contact our office for current rates and options.
Fixed Indexed Annuities
Fixed indexed annuities are similar to fixed annuities in that the principal amount is guaranteed by the insurance company. Rather than earning a fixed and determined interest rate, these annuities use stock market indexes such as the S&P 500 to determine the amount of interest to be paid. With the principal guarantee of the annuity, you are protected from market losses while potentially earning higher rates of interest when the stock market is rising. Many fixed indexed annuities also have a number of other benefits such as guaranteed income riders that make them a great choice for setting up a lifetime stream of income.
SPIA's
Single Premium Immediate Annuities or SPIA's are a type of annuity that is funded with a single payment and creates an immediate income stream with multiple options for how to receive the income. Options such as straight life, joint life, and term specific are just a few of the ways these annuities guarantee income to the annuitant and/or their beneficiaries. In today's annuity landscape, SPIA's are being replaced by the robust income options found in fixed indexed annuities but still have their place in certain situations.