Fixed Index Annuities – It’s Like Insuring Your Retirement!
Much has been written about FIAs (Fixed Index Annuities) but the point we would like to make in this article is that an annuity is, at the end of the day, an insurance product and one should look at it as insurance on your retirement.
Because there is no down-side risk, the insurance company guarantees your investment but, not only that, in the case of a FIA, the company will allow you to share in the market growth subject to certain limitations.
As with any major asset, i.e. one’s home, car, carrying insurance on that asset is a no-brainer. Why then should it not be the same with probably one’s biggest asset-the retirement fund?
It does make sense to have some money invested in the market-and carry the insurance oneself in return for the potential of greater returns, but the closer one is to retirement and the less one can afford to take a knock, the more you should ensure that your retirement is ‘insured’ against market exposure through the use of FIAs.
There are numerous products and choices and you will need the help of your insurance advisor to find the right one for you.
Your retirement is too important to be subject to the whims of the market-just ask those retirees who thought they were well-set back in 2008 and are still out there working!
A little work now and the correct choices will ensure that you can afford to retire on your own terms, and at a time of your choosing.
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