AnnuityAdvantage Recognizes National Annuity Awareness Month with Eight Reasons to Consider Fixed Annuities
June 24, 2014 by PR Newswire Association LLC
MEDFORD, Ore., June 24, 2014 /PRNewswire/ — National Annuity Awareness Month is all about educating consumers. AnnuityAdvantage takes this aspect of its mission to heart; Founder Ken Nuss believes strongly that fixed annuities are the best and safest choice for retirement income security in uncertain times. The following are eight convincing arguments in his favor.
Safety
Outliving one’s retirement savings is what keeps retirees and near-retirees up at night. Fixed annuities, however, have contract provisions that, when activated, protect annuity holders from ever running out of income, among other unique guarantees.
Predictability
With a fixed annuity, retirees can enjoy a remarkable degree of predictability, enabling them to plan out their lives many years into the future, free from the worries that accompany most other investment vehicles. Should market volatility rear its ugly head again, the unsexy consistency of a fixed annuity will provide peace of mind.
Growth Potential
A retirement account with no capacity to grow in value is all but worthless. Unexpected expenses, long-term care and other healthcare costs, market losses and taxes all chip away at retirement savings, often at a surprising rate. Near-retirees routinely underestimate the money they’ll need to live comfortably, especially considering that life expectancies are only going up. Fortunately, fixed annuities allow for interest earnings to grow and compound on a tax-deferred basis, postponing taxes on interest earnings until a future date that is controlled by the annuity owner. In the meantime, additional interest is earned on the money that would have normally been withdrawn to pay income taxes on a traditionally taxed account.
Simplification
Retirees want to leave behind not just the working world, but also the world of tedious record keeping and planning. A fixed annuity means a single account statement, which means less stress and more time for the pursuit of hobbies and the enjoyment of life.
Accessibility
Fixed annuities offer liquidity options typically not available with most other retirement accounts and investment vehicles. Although withdrawing too much too early will incur fees, annuities do provide convenient access to funds via annual penalty free withdrawal provisions and significant life event riders. No one can predict the future, after all, and emergencies happen every day.
Tax Deferral
Money held in a fixed annuity is not subject to taxes while it accumulates interest earnings. When it’s time to start drawing on the funds, annuities offer distinct tax advantages as compared with most other retirement income sources. While it’s not possible to entirely escape taxes, fixed annuities allow account holders the ability to avoid them until the timing is most opportune, therefore minimizing their burden.
Support
Fixed annuities are sold by financial professionals, and these financial professionals are available to answer all questions related to the account, make recommendations and so on.
Legacy Considerations
Should a fixed annuity account holder die before exhausting their account value, the balance can be quickly and efficiently transferred to beneficiaries, completely avoiding probate. Most annuities even offer the option of guaranteed income for surviving spouses and beneficiaries rather than a lump sum payment.
About AnnuityAdvantage
Founded in 1999 by veteran financial and retirement planner Ken Nuss, AnnuityAdvantage is a leading online provider of multi-year guaranteed, fixed-indexed, and immediate income annuities. Consumers planning for retirement have come to rely on AnnuityAdvantage for individualized recommendations and guaranteed, high-value annuity products that have been thoroughly screened by Nuss and his staff. The company’s client-centered approach allows consumers to find the best mix of annuity products for their unique needs from the hundreds of annuities available through AnnuityAdvantage. There are no fees for the service.
Nuss is an active member of the National Association of Insurance and Financial Advisors (NAIFA), the National Association for Fixed Annuities (NAFA), and the National Ethics Association (NEA). He holds an Oregon insurance consulting license, along with an individual producer license in all 50 states and the District of Columbia.
