Tim Dern discusses if a fixed Index Annuity can be part of a retirement plan.

Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/interview-with-tim-dern-retirement-income-certified-professional-and-managing-partner-with-mana-financial-group-discussing-asset-allocation/

A fixed index annuity (FIA) is an insurance product designed to provide retirement income that grows over time. With an FIA, the money can grow based on the performance of an underlying market index, such as the S&P 500, without directly participating in the stock market. While FIAs offer some potential for growth and protection from the downside risk of the stock market, there are also important drawbacks to consider before investing in one.

When deciding if an FIA should be part of a retirement plan, people should understand what type of return it provides. The amount of growth they get with an FIA depends on how much people invest and how well the underlying index performs during each contract year. It’s possible to earn interest credits as high as 6-7% in a contract year, but they won’t be able to access this interest until the end of the term. Also, depending on the FIA, there may be caps or spreads that limit how much they can earn.

In addition to potential return, it’s important to consider whether an FIA meets people’s needs for liquidity. Generally speaking, FIAs don’t provide immediate access to cash if they should need it and surrender charges may apply if they withdraw funds before the end of the term. Furthermore, certain fees and expenses associated with FIAs can significantly reduce their total return over time.

When considering an FIA for a retirement plan, it’s essential to understand any restrictions on when and how much money can add or withdraw. This should be outlined in the contract and it’s important to weigh these restrictions against the financial needs.

Tim explained: “Overall, a fixed index annuity may be an appropriate choice to include as part of a retirement plan if people are looking for potential growth and protection from downside risk without direct participation in the stock market. It’s crucial to fully understand all aspects of an FIA before investing in one, including its limitations on liquidity, fees, caps, and other restrictions. By considering all factors carefully, people can make an informed decision about whether an FIA is right for their retirement plan.”

Also, it’s important to understand the different types of FIAs available. While some may be invested in a single index like the S&P 500, others are multi-index products that give exposure to several indices for more diversified growth potential. There are also deferred annuities that provide an opportunity to grow money over time without giving up access to it until a later date. Each type of FIA has its own unique features and risks that should be taken into account when making an investment decision.

While FIAs can help maximize a retirement income, they carry certain risks as with any other financial product. It’s important to consult with a qualified financial professional who can help to evaluate the potential benefits and risks associated with an FIA in order to make an informed decision.

In conclusion, a fixed index annuity may be worth considering as part of a retirement plan. However, it’s essential to understand the product’s features, limitations, fees, and other restrictions before investing in one. With the right guidance and by researching different types of FIAs thoroughly, people can decide if this product is right for them.

Video Link: https://www.youtube.com/embed/xLmP6oYlGbk

About Tim Dern

Tim Dern, with decades of experience in the industry as 65 securities licensed professional, brings a wealth of expertise to his clients. Unlike traditional broker-dealer models, his fee-based approach puts you first. He leads a private wealth team, offering top-notch asset management services with a focus on retirement strategies.

As an RICP (Retirement Income Certified Professional), he is uniquely skilled in creating customized plans that maximize your income during retirement. His impressive portfolio includes AUM, Fixed Index Annuities, IUL, Medicare Supplements, Advantage & Drug Plans, and more.

But what truly sets him apart is his dedication to education. As an NSSA (National Social Security Advisor), he offers educational seminars on social security, Medicare, proper asset allocation, Roth conversion, and tax-saving strategies. And for those unable to attend in person, he hosts online webinars nationally – using Facebook ads to reach a wider audience.

With his unparalleled knowledge and commitment to your financial success, he is ready to help you plan for a secure future. Contact us today to schedule a consultation and experience the difference for yourself.

Learn More: https://www.manafg.com/

Recent news and interviews:

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