Consider Fixed Interest Rate Annuities Today
Annuity rates can range from 2 1/2% to almost 4% for a short time frame. Many people only wish to purchase a three-year annuity and withdraw their funds without penalty at the end of the term, but you can also buy them in for five and six year terms that may offer higher interest rates the longer they have your money.
Fixed rates are not always good for everyone. It’s best to talk to a financial professional before purchasing any annuity. Make sure your financial professional is one that’s properly licensed and has access to dozens of different companies. It is also important that your advisor is not a person who is captive to only one or two products that they may offer.
Getting a Competitive Interest Rate is Important
You might need this money as a source of monthly income or to incur the benefits of tax deferred growth. In both cases, make sure you’ve considered all of the opportunities that different companies can offer you.
Let us help you make that connection. Our firm connects customers with a professional financial advisor, a person who has years of experience in their field working independently to provide the best Rated annuities and competitive interest rates in the industry. If you’d like to connect to an advisor and get a personalized quote click here now and provide us some basic information about yourself. We will email you the name of the advisor and their number. Please place the information in your phone log so when they call you’ll know they’re legitimate and not a robocall. Take advantage of the expertise these people can provide you.
Rest assured if you do not have a good connection with that advisor, we will be happy to refer another one to you.
Understanding How Financial Advisors Are Paid is Important
Fees for financial planning are not always charged by advisors. Many will provide their services free to you and would then be paid a commission from any product you may purchase. They are still obligated under the Best Interests Rule to place your needs ahead of their own. This “The Best Interest Rule” was recently passed and will take affect this summer of 2020.
We suggest that you ask your advisor how they are paid, what commissions they may receive, what their planning fees are and if there are any ongoing fees they may charge you monthly for oversight or management.
Outside Advice
When moving money to tax qualified investments outside of your retirement plan you can choose a financial advisor that works only for you, understands your individual goals, needs and may take on the capacity of a fiduciary overseeing your investments in your best interests. Often your employer’s retirement plan counselor is limited to offering any investing or investment advice leaving you with the job of doing it yourself and you may not be comfortable with that option.
Movement of Money Strategy
TSP and retirement plans available to employees are typically long term and dollar cost averaging growth investing. Once you retire your strategy will need to change form growth to income. To make this change in one movement of money at one time is not always the best choice. Having an outside plan now, while you are still working, will allow you the opportunity to slowly transfer your growth strategy into an income strategy so by the time you do retire you can ease into a stream of income that may better meet your needs.
It’s Easy To Move Your Money From Your Plan
Provided you are age 591/2 or older you may be allowed an in service retirement funds transfer. This will allow you to transfer all or a portion of your retirement plan funds to an outside retirement plans self directed IRA allowing you to take advantage of selecting an annuity to other qualifying alternative investments for your funds today. Many plans offer the ability to phone in your request to transfer money to a new custodian for a tax qualified IRA account. Sometimes its simple paperwork and your financial advisor should be familiar with each of the processes and walk you through them.
You can learn more about the types of annuities that are available by visiting the annuity selection tab on our website.