Capture a High Fixed Rate
You can purchase annuities that are 2, 3, and 4 years in length and capture a high fixed rate for the period of time you want. When your time period is up you can take your money out without penalty.
Tax deferred annuities offer you the benefits of not reporting any interest earned until you withdraw the earnings you can also receive income monthly immediately if you need it or withdraw randomly as needed for emergencies or regular larger expenses.
Benefits of Annuities
Tax deferred annuities offer you the benefits of not reporting any interest earned until you withdraw the earnings. You can also receive income on a monthly basis immediately if you need it, or withdraw randomly as needed for emergencies or regular larger expenses.
Fixed guaranteed annuities can help you through these difficult times when bond yields are too low and risky, fixed annuities offer the guarantees and backing of the insurance company it’s issued by each company receives a financial rating that you can review to determine if they are right for you.
Find out what fixed annuity short term rates could be for you. Let us connect you with an advisor and get a free annuity rate. Click here to connect.
What Type of Annuities Are Available To Me?
You can purchase a fixed interest rate annuity, Index annuity, variable annuity or an immediate annuity with your retirement funds or after tax dollars
Annuities are designed to meet a variety of financial needs that may require tax deferred growth , income needs to cover expenses now or take later in life, for estate planning, wealth transfers or even philanthropic reasons to see that money goes to their favorite charities after they are gone. Annuities are also useful if you have a sick or disabled loved one you want to see is taken care financially after you are gone.
Every ones needs may be different, creating a retirement plan and income strategy should be taken seriously and we suggest that you seek professional advice. Often people do not seek advice because they are worried that financial advisors may charge high fees for their time.
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.
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.