A fixed index annuity is a unique type of investment and retirement product. These options allow for a saver to take advantage of fluctuations in the underlying index marketplace (such as the S&P 500, Nasdaq, or Dow Jones Industrial Average) while ensuring great fiscal stability at the same time. Indexed annuities bridge the gap even more between the sure returns of a Certificate of Deposit (CD) or bond and the full-fledged momentum of stock market trading.
For investors and savers who are seeking a broader slice of market movement and potential for principal growth, the best fixed index annuity for you is perhaps the right choice. Fixed index annuities are tethered to the market, but your money is never directly exposed to marketplace conditions, meaning a downturn in the stock market won’t hamper your ability to extract the payouts that you count on to cover ongoing living expenses. This, in fact, is the true purpose of an annuity purchase. These financial resources are great for savers who are seeking a transition into retirement and want to count on a consistent stream of income that will allow them to leave the workforce for good.
For most, bringing home around 80 percent of pre-retirement income will act as the benchmark for a financially stable retirement. But this isn’t as easy as it might sound. With stocks acting as the primary means of income generation, your principal is at risk of market shocks, such as the continued downward momentum that has threatened the ongoing marketplace trends throughout the coronavirus pandemic and pushed the market into continued periods of correction and even bear market territory.
If you’re thinking of adding a new retirement finance product to your portfolio, a fixed index annuity might be the perfect option. Continue reading to learn more about these retirement insurance products and how you can compare the market to find the best option for your needs.
Annuity comparison takes patience, but it’s easier than you’d think.
An annuity comparison site and other resources that provide details on various branded annuities is the best resource for someone seeking a new retirement savings product to add to their portfolio of assets. Annuities from different providers follow the same basic rules, requirements, and structures, but the terms and brand-specific details can vary in important ways. For instance, one annuity provider might offer a 2 percent return while another can guarantee 2.5 percent for the same investment and underlying terms. It’s incredibly worth your while to utilize a service like AnnuityAdvantage to gain a greater depth of understanding when it comes to the payouts, terms, and rate options available for you and your loved ones.
Gaining a wealth of knowledge on any subject is crucial before making an important decision, but when it comes to your money and your retirement, this is no laughing matter. It pays to be thorough, so make sure you know exactly what you’re getting.
Annuities are perfect for those seeking a serene retirement.
An annuity is, at its core, an insurance product that is paid into in either a lump sum or with installments as you near your set retirement date. Annuities then kick in and provide you with dividend payments based on the principal and agreed-upon terms. These are guaranteed rates and can offer a huge boost to your ongoing financial calculation as you look to understand your financial needs and opportunities based on Social Security checks, pension income, investment dividends, and more. Annuities provide a structured and guaranteed addition to this ongoing retirement income that is not easily duplicated in any other way.
Consider adding a great fixed index annuity to your retirement portfolio for the greatest peace of mind and comfort possible.