Not everyone is equally prepared for retirement—annuities can help

While some are fortunate to have built a nest egg that will last through retirement, others will depend on government programs for retirement income.

Regardless of which side of this divide you are on, annuities can be a powerful vehicle to help fund retirement dreams.

Whether it is to deliver guaranteed income to you and your loved ones in retirement, to protect your principal while also providing income, or to provide death benefits to your beneficiaries upon your passing, there are annuity products to meet every need. 

Why you should consider annuities

Many retirees and soon-to-be retirees are concerned about the safety of their investments in mutual funds, ETFs, and stocks. The gyration in the stock market is often hard to stomach for older adults entering retirement. With the help of a well-chosen annuity, one can add a layer of diversification to a retirement portfolio. 

Annuities are structured as investment vehicles that are insulated from the fate of stock market behavior. The nature of annuities means you’ll never need to worry about when/how long you’ll need to wait before you recoup losses from the next stock market crash! Annuity investments are sheltered from such risks.

For the soon-to-be retiree who is concerned that they have missed the proverbial retirement savings boat, annuities offer good news. Because there’s no limit to how much you can contribute in annuities, on an after-tax basis, you’ll have flexibility in how much you save, and will never have to worry whether it’s too late to play the “catch up” game.   

How Team Treece can put annuities to work for you

Used strategically, annuities can be an extremely powerful retirement income planning vehicle. Here are some of the ways that we can help you: 

  • Use annuities as a retirement planning option: We work with you to review your entire existing portfolio to determine whether annuities are right for you. In some cases, overexposure to other fixed-income products, like Bonds and Dividend-paying stocks, could still leave your retirement income exposed. 

  • Make cost-effective annuity choices: Not all annuities are created alike. While they may generally be a great choice for generating fixed income in retirement, the cost associated with producing such income could sometimes be high. 

  • Receive tax-advantaged income: We help clients manage their tax liability through prudent product selection. Some annuities, like tax-deferred variable products, enable investors to receive tax-deferred income now – by not including such income to determine your current tax liability. Subsequently in retirement, when you might be in a lower tax bracket, your annuity-dependent income will not be a source of significant taxes

  • Build flexibility into your retirement planning objectives: We do this by choosing annuity products that can easily be switched between investment portfolios without the risk of triggering associated taxes. So, if your investment objectives change during the investment horizon, you can effortlessly switch to a different annuity to support your new objectives, without fear of being saddled with a huge tax liability

Would you like to see how we can assist you with exploring what annuities may be best for you? Set up a time to chat here.

_ _ _

*There is a surrender charge imposed generally during the first 5 to 7 years that you own the contract. Withdrawals prior to age 59 ½ may result in a 10% IRS tax penalty, in addition to any ordinary income tax. The guarantee of the annuity is backed by the financial strength of the underlying insurance company. Investment sub-account values will fluctuate with changes in market conditions.

*Investors should consider the investment objectives, risks and charges and expenses of the variable annuity carefully before investing. An investment in a variable annuity involves investment risk, including possible loss of principal. Variable annuities are designed for long-term investing. The contract, when redeemed, may be worth more or less than the total amount invested. Variable annuities are subject to insurance-related charges including mortality and expense charges, administrative fees, and the expenses associated with the underlying sub-accounts. The prospectus contains this and other information about the variable annuity.Contact the issuing firm or your registered representative to obtain a prospectus, which should be read carefully before investing or sending money.