In this episode on Annuities, we’re taking a look at Fixed Indexed Annuities. Everything you need to know to start getting a basic understanding of how they work and the choices you have to make within the Annuity before getting one.

00:00 Introduction
00:45 Skepticism
03:49 ‘Consider the Alternative’ Presentation
08:26 ‘Retiring with Confidence’ Presentation
10:19 Account Value
13:40 Reset Period
16:15 Earning Interest
20:50 Renewal Rate
25:00 Zebra Edge Index
34:40 Contact Us!

Link to Studies:

#Annuity #retirementplanning #TroySharpe

Working with a CFP® professional can be an important step toward reaching your financial goals. Not only do these advisors meet rigorous education and experience requirements, but they are also held to some of the highest ethical and professional standards in the industry.

Education
CFP® professionals must master nearly 100 integrated financial planning topics, including:

– Investment planning
– Tax planning
– Retirement planning
– Estate planning
– Insurance planning
– Financial management

In addition to completing a comprehensive financial planning curriculum approved by the CFP Board, or equivalent academic coursework, CFP® professionals are required to complete continuing education coursework, including a CFP Board approved code of ethics course, to ensure their competence in financial planning.

Examination
CFP® candidates must pass a comprehensive 6-hour CFP® Certification Examination that tests their ability to apply financial planning knowledge in an integrated format. The exam is notoriously difficult and only 64% of people who took the exam in 2017 passed. Based on regular research of what planners do, the exam covers:

Establishing and defining the Client-Planner relationship
Gathering information necessary to fulfill the engagement
Analyzing and evaluating the client’s current financial status
Developing recommendations
Communicating recommendations
Implementing recommendations
Monitoring the recommendations
Practicing within professional and regulatory standards

Experience
CFP® professionals must have a minimum of three years experience in the personal financial planning process prior to earning the right to use the CFP® certification marks. As a result, CFP® practitioners possess financial counseling skills in addition to financial planning knowledge.

Ethics
As a final step to certification, CFP® practitioners agree to abide by a strict code of professional conduct, known as CFP Board’s Code of Ethics and Professional Responsibility, that sets forth their ethical responsibilities to the public, clients and employers. CFP Board also performs a background check during this process, and each individual must disclose any investigations or legal proceedings related to their professional or business conduct.

This video discusses fixed income investing and utilizes the 10 year U.S. treasury as a general representative fixed income investment. Conclusions reached, opinions stated, and downside risks and potential returns presented should not be construed as applying to other types of bonds or fixed income assets. Other types of fixed income products carry different levels of risk and return potential and should be evaluated as an element of a diversified portfolio with your specific risk tolerance, investment objectives, and timeline in mind. Nothing in this video is investment advice, an investment recommendation, or an offer to buy or sell any security. Investing involves risk.

Do you need a retirement plan beyond allocating funds to truly fit your needs? We can help you create a retirement life plan customized for your retirement vision and legacy. Call us at (877) 404-0177 or fill out this form for a free consultation: …(read more)

LEARN MORE ABOUT: Retirement Annuities

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Fixed Indexed Annuities – The Basics

Annuities have long been recognized as a reliable and secure method for ensuring regular income during retirement. Amongst the various types of annuities available, Fixed Indexed Annuities (FIAs) have gained popularity in recent years for their unique features and potential for significant growth.

So, what exactly are Fixed Indexed Annuities? In simple terms, they are a specific type of annuity contract that combines features of both fixed and variable annuities. Unlike traditional fixed annuities that offer a guaranteed interest rate, FIAs provide the opportunity to earn interest based on the performance of an underlying market index, such as the S&P 500.

The basic principle behind FIAs is that while individuals can potentially benefit from market gains, they are also protected from market downturns. This makes them a popular choice for those who want to participate in the stock market without exposing their savings to the risk of significant loss.

When you invest in an FIA, your annuity provider typically credits your account with a minimum guaranteed interest rate that acts as a safety net. In addition to this, your annuity’s growth is linked to the performance of the chosen market index. If the index performs well, your annuity will be credited with a portion of the gains, commonly known as a participation rate. However, if the index experiences a decline, your principal is protected, ensuring that you do not lose money.

Another key feature of FIAs is the option to receive income payments for a specified period or for the rest of your life, depending on your preference. This can help individuals manage their retirement income and provide a steady stream of funds to support their lifestyle.

Fixed Indexed Annuities also offer tax deferral benefits. Since earnings within the annuity grow tax-deferred until they are withdrawn, individuals can potentially enjoy higher accumulations due to the compounding effect over time. However, it is important to consider the tax implications when withdrawing funds, as they may be subject to ordinary income tax. It is advisable to consult a financial advisor or tax professional for advice specific to your situation.

It is worth noting that while FIAs provide the opportunity for growth, they come with certain limitations. The participation rate determines how much of the index’s gains are credited to your account, and it can vary depending on the annuity provider and the specific product. Additionally, there may be a cap or upper limit on the potential growth, which means that you may not fully benefit from the overall market gains.

FIAs have gained popularity as a retirement planning tool due to their unique features and potential for growth with protection. However, it is crucial to thoroughly understand the terms and conditions of the annuity contract before making any financial commitments. Working with a qualified financial advisor can help ensure that FIAs align with your investment goals and risk tolerance, ultimately supporting a comfortable retirement.