Andre Pennington, a wealth attorney and a registered financial planner® from Pennington Law, PLLC, recently published an article in Forbes Magazine on the value of fixed indexed annuities as a tool to grow retirement savings.
A fixed indexed annuity (FIA) is an insurance product that financial planners sometimes overlook as a strategy for retirement savings, Pennington writes. Investing in the stock market can feel risky for retirees, who worry about outliving their financial resources. Fixed indexed annuities allow people to participate in stock market gains without worrying about taking a hit in a downturn. That’s because you never put your principal in danger. With an FIA, your original investment remains safe regardless of market behavior. At the same time, you can potentially grow your savings and improve your financial security.
Some fixed indexed annuities also allow lifetime income options, enabling people to draw a steady stream of income during retirement and defer taxes until withdrawals begin.
Pennington also offers some cautionary advice: Fixed indexed annuities are complex products, so finding someone well-versed in retirement planning is essential to ensure it’s a tool that best suits their objectives.
To learn more about how fixed indexed annuities might fit into your retirement protection strategy, schedule a free consultation with Pennington Law, PLLC today.