In today’s low-interest-rate environment, there are fewer fixed income alternatives for retirees seeking income. Rates on traditional staples such as CDs and money market accounts are at or near all-time lows. For retirees seeking income and safety, fixed income annuities are an alternative to consider. Annuities are backed by the claims-paying ability of the insurance company issuing them. Once thought of as only a standalone retirement income solution, annuities are now commonly recognized as one of many components of a retirement portfolio.  Here’s why:

  • Annuities protect during times of market decreases; withdraw from the annuity to avoid liquidating other accounts at low share prices.
  • Fixed-income annuities purchase a one-time payment or period purchases. They are contracts purchased directly from an insurance company or a financial institution.
  • Fixed-income annuities can be immediate, meaning payments commence at once or deferred with payments starting at a later date. Payment options can vary, including monthly or quarterly.

The advantages of a fixed-income annuity include:

  • A guaranteed stream of lifetime income now or in the future.
  • A way to add a fixed-income component to your retirement portfolio.
  • They can be structured to provide income for your life and that of a spouse if applicable.
  • The insurance company guarantees the payments.
  • They can provide pension-like payments for those with no actual pension.

    Not all fixed income annuities are created equal or are all the providers of these products. I can assist you in determining if a fixed income annuity is right for your situation.

  • You won’t outlive the payments.

Not all fixed income annuities are created equal or are all the providers of these products. We can help you decide if a fixed income annuity is right for your situation, and if so, which product is the best for your unique situation. Why not give me a call to discuss your financial situation and to see if a fixed income annuity makes sense for you?

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