Summerlin Benefits Consulting Q&AAnswer
Dec 26, 2024 - 10:01 AM
Fixed Index Annuities (FIAs) offer significant potential benefits for retirement planning, especially in terms of tax-deferred savings and lifetime income.
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Tax-Deferred Savings: One of the primary advantages of FIAs is that they allow the growth of your investment to accumulate without being taxed until you withdraw funds. This can be highly beneficial for retirement planning, as it enables your money to grow at a faster rate compared to taxable accounts, allowing you to take advantage of compound interest without the burden of annual taxes on earnings.
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Lifetime Income: FIAs can also provide a reliable source of lifetime income, which is crucial for ensuring financial security during retirement. With an FIA, once you reach retirement age, you can opt to convert the annuity into a stream of monthly payments for the rest of your life. This means you don’t need to worry about outliving your savings, as the annuity guarantees income for life, regardless of how long you live.
These benefits make FIAs a compelling option for those seeking to protect their retirement savings from market volatility while ensuring a steady income stream for their later years.
