Aug 18, 2021
Is it a good idea to keep your money for retirement in a CD? What about investing in the stock market? How should you invest your retirement money? If you are wondering if a fixed indexed annuity is the right investment for your retirement portfolio, you’ve come to the right! Join me for this episode as we dive into fixed indexed annuities - we’ll answer some common questions and cover some helpful tips, you don’t want to miss it.
You will want to hear this episode if you are interested in...
- Are fixed indexed annuities any good? [1:30]
- Understanding how “Point to point” fixed indexed annuities work [3:00]
- How insurance companies make a profit from fixed indexed annuities [6:30]
- Make sure you aren’t getting ripped off by your financial advisor [12:00]
- Closing thoughts [16:00]
Fixed Indexed Annuities
What is a fixed indexed annuity? Is it a good investment for you at this stage in your life?
An indexed annuity has characteristics of both fixed and variable annuities. Income payments for indexed annuities are tied to a stock index. You’re guaranteed to receive at least 87.5% of your principal back, plus 1 to 3% interest. Annuities are contracts between purchasers and insurance companies. In most cases, the annuity buyer is purchasing a steady income stream to fund retirement.
You need to know that fixed annuities are not going to be for everyone. If you want to get a really good return on your investment, you need to be prepared to let your money stay in a fixed indexed annuity for at least five years. Make sure to tune in to this episode as I expand on fixed indexed annuities and so much more!
Follow the money!
If you’ve been listening to my podcast for a while, you’ve probably heard me say that you need to make sure you understand how your financial advisor is getting paid. I want to stress this important lesson when it comes to indexed annuities as well - make sure you are following the money. How does the person advising you get paid? How does the insurance make money on the product they are selling you? If you can’t get a straight answer to these critical questions, then don’t walk, run away! Learn more about protecting your investments and planning for the future wisely by listening to this episode.