Dean Statler, Pathway To Retire: Is a Fixed-Income Annuity Right for You?
By Dean Statler, Pathway To Retire // October 9, 2020
Annuities are backed by the claims-paying ability of the insurance company issuing them
WATCH: What is your pathway to retire? Meet Dean Statler, Investment Advisor Representative with Pathway to Retire.
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 https://www.kiplinger.com/article/retirement/T003-C032-S014-annuities-to-buy-ornot-to-buy.html of a retirement portfolio.
■ 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.
■ You won’t outlive the payments.
Not all fixed income annuities are created equal https://www.fool.com/retirement/2018/05/04/whatare-the-best-annuities-for-you.aspx 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?
For more information, log on to PathwayToRetire.com/services/tax-free-retirement or call 772-778-9222, ext. 19.
Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor. BCM, Pathway to Retire LLC (PTR), and Tom Collins Insurance Agency Inc. (TC) are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims-paying ability of the issuing company and are not offered by Brookstone Capital Management.”