RETIREMENT PLANNING Are you interested in putting money back for later.....that will grow with interest? Do you have a lump sum of money that you want to make sure will never run out......once you start drawing off of it? Or are you interested in an insurance product that is protected from stock market drops.....at the same time, will yield growth with stock market gains?
What type of retirement planning solution are we talking about? Annuities! There's more than one type of annuity. There's annuities that will fit someone who is looking for financial growth over time and for individuals who just want to make sure what they already have will last a long time or until death. An annuity is an excellent tool for either situation. An immediate annuity would be something suitable for someone who has a large sum of money......like lottery winnings, retirement savings from a job(401K), IRAs, CDs, or savings in general. The money can be rolled over into an annuity.....to start receiving fixed amounts for a certain number years or for the rest of the annuity receiver's life.
A fixed annuity can be used as a vehicle to save money with interest growth. If the contract is set at 3%, the annuity will grow at 3% compounding interest; the rate will never change no matter what. This means if you started out contributing $100 per month over a 15 year period.....you will have paid in $18,000. However, with compounding interest......your investment will have grown to almost $23,000. Fixed annuities are ideal for the younger financial conscientious investor.
A fixed indexed annuity can yield even more growth over time, because even if your contract rate is 3%......the current stock market rate could be 8%. Your growth of return will grow at that rate and if the rate goes down under 3%.....your contract rate will never stop growing at that 3%......meaning you will always receive compounding interest no matter what is going on with the stock market. This is much different than a regular stock. You could invest in a regular stock with the risk of loosing all of your money.