Index annuities protect retirement funds and guarantee principal
To protect yourself from market volatilities, index annuities provide a powerful option to protect the downside issues of the market while still providing strong upside potential when the market grows. Additionally, annuities protect your principal, so it’s not at risk.
With the recent COVID stock market troubles, many have seen their retirement savings plummet once again. Those over 50 are the ones hardest hit as their risk tolerance becomes more conservative and their timeline to retirement continues to shorten.
Annuities provide benefits that other qualified plans are not capable of providing, including:
- Protection of principal
- Downside protection when the market drops
- Upside growth when the market improves
- Guaranteed life income stream for both spouses
- Beneficiary payment in the case of premature death
- Living benefit options for elder care, critical, and terminal care
While fixed annuities are usually the better option for retirees over 70, index annuities are a great option for those who need a conservative investment approach but still want the upside of a growing market that will increase returns on the annuity. Index annuities have a guaranteed minimum return that never drops below 0%. The guarantee minimum is combined with upside potential when the market grows and is typically based on the overall performance of the S&P 500.
Forbes calls the Annuity the “Swiss Army Knife” of retirement planning
Annuities can be used in a qualified and non-qualified account, and are also available for 1035 exchanges. Contact Ascend Financial Group for a consultation on your retirement strategy.