It may seem odd, even a bit out of place, to suggest that a fixed annuity may be a good fit for your retirement plan.
After all, a 403(b) already provides you with tax deferred gains (as do all qualified plans), so why put an annuity within them?
In other words, how is this a good investment strategy for you?
It comes down to what a fixed annuity can provide for you, in terms of fixed interest rate protection, that makes them an attractive option.
And in this economy it has never been more fitting.
Let me explain how…
Retirement planning 101
The benefit for having a retirement plan – IRA, 401(k), etc. – in the first place is the factor that provide you with tax deferred growth. This simply means that your earnings or investment gains are not taxed from year to year.
So why is this a good thing for you?
Quite simply, the more money allowed to stay within your account the faster your account will grow.
However, there is one major obstacle or challenge facing all retirement plans – the possibility for losing money through poor investment choices or market instability.
For example, my dad’s retirement account was quite significant three years prior to his retirement.
And this fact didn’t surprise him since he had spent more than 30+ years working for the same company while contributing to his 401(k) every year since the mid-70s.
Unfortunately for him, however, this was the late 90s right before the tech bubble burst. Six months before retiring his account was only 20% of what it had been previously.
The moral to the story is that it is clearly important to protect your principal and investment gains within your retirement plan.
And having a fixed annuity as an investment option will provide you with the tax-deferred growth you need with a guaranteed rate of return provided by the annuity.
In a sense, this combination provide you with the growth in security you need to ensure a successful retirement – from a financial standpoint that is.
In fact, according to Jim Mullery, president of Security Distributors, Inc., the new annuity option…
“offers plan advisors a solution to help them with their client’s concerns about market risk and volatility.”
Does that make sense to you?
If so, perhaps this time for you to…
Get your free annuity quotes today
To speak with a handful of insurance agents that specialize in fixed annuities, simply request free quotes from qualified and reputable companies.
Click the link and compare free annuity quotes today.
Or if you prefer follow the link for our directory of insurance providers and do the research yourself to find someone who can help you get set up for your State or Metro area.
Either way the choice is yours…