Helping pre-retirees have more time, with tax efficient retirement paycheck for life, no market risks for wealth transfer and estate plan
For a 60-year-old looking to maintain wealth in retirement using index annuities, here's an approach based on the given parameters: Fixed Index Annuity Strategy Fixed index annuities can provide a balance of growth potential and downside protection for retirees. Here's how a 60-year-old could utilize them: Initial Investment Starting with $250,000 in a fixed index annuity at age 60 provides a solid foundation. This amount allows for meaningful growth while maintaining liquidity for other needs. Potential Returns While an 13% return is optimistic for index annuities, it's important to note that actual returns are typically lower due to caps and participation rates. A more realistic expectation might be in the 6-8% range annually, depending on market performance and contract terms. Key Benefits Principal Protection: The initial $250,000 investment is protected from market losses. It tracks the market and does not participate in the market. Tax-Deferred Growth: Earnings grow tax-deferred until withdrawals begin. Guaranteed Minimum Return: Most index annuities offer a guaranteed minimum return, often around 3-4% or more. Maximizing the Strategy To optimize this approach: Diversification Don't put all retirement savings into a single annuity. Consider diversifying with other investments and income sources. Delayed Income Waiting to start income payments can potentially increase the payout amount. Consider deferring until age 70 or later if other income sources are available. Rider Options Explore income riders that may provide guaranteed lifetime income, though these often come with additional fees. Income rider for Performance Pro at fglife index annuities is 0.01 of income base. Regular Review Annuity terms and market conditions change. Review the strategy annually with a financial advisor to ensure it remains aligned with retirement goals. Considerations Fees and Surrender Charges (up to 9 yrs): Be aware of any fees or surrender charges that could impact returns or access to funds. Inflation: While the annuity may provide steady income, consider how inflation might affect purchasing power over time. Flexibility: Understand that large portions of money in an annuity may be less accessible for unexpected needs. There is income doubler for home health at fglife.com However, it's crucial to have realistic expectations about returns and to consult with a financial professional to tailor the strategy to individual circumstances. Connie Dello Buono Index Annuities Broker 408-854-1883 Investment fiduciary
