Joe Edgeworth
The Edgeworth Insurance Group
Addressing Retirees' Biggest Concerns with Fixed Indexed Annuities
The transition into retirement brings about various financial concerns for many individuals. How will one ensure a consistent income stream, protect against the stock market's volatility, and beat inflation while preserving the principal? The solution to these challenges might lie in a financial product called a Fixed Indexed Annuity (FIA). In this article, we'll dive into the mechanics of FIAs and highlight how they can address some of retirees' most pressing concerns.
What are Fixed Indexed Annuities?
At its core, a Fixed Indexed Annuity is a contract between an individual and an insurance company. The individual pays the insurer a lump sum or a series of payments. In return, the insurance company promises to make periodic payments to the individual immediately or later.
The distinguishing feature of an FIA is its earnings potential. Unlike traditional fixed annuities that offer a guaranteed interest rate, FIAs provide a return based on the performance of a stock market index, such as the S&P 500. Importantly, FIAs have a floor, protecting your principal even if the market goes down.
Now, let's examine how FIAs may address the common concerns of retirees:
- Principal Protection
- Potential for Growth
- Predictable Income Stream
- Inflation Protection
- Tax Deferral
- Liquidity Options
- Fixed Indexed Annuities (FIAs) are contracts between an individual and an insurance company, offering a return based on the performance of a stock market index while ensuring principal protection.
- FIAs provide retirees with principal protection, the potential for market-linked growth, and a predictable, guaranteed lifetime income stream.
- Tax-deferral benefits, liquidity options, and possible inflation protection make FIAs a valuable tool for retirement, though they come with terms and potential downsides to understand.
Joe Edgeworth
The Edgeworth Insurance Group
2715 Spring Valley Rd.
Lancaster, Pennsylvania 17601
joe.edgeworth@retirevillage.com
(800) 824-8609
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