The combination of rigorous regulation and oversight by state insurance regulators, which includes more effective suitability standards and industry-led improvements to agent training, have contributed to the decrease in customer complaints over time.  Customers continue to recognize the many benefits of the product, including protection from stock market volatility, guaranteed interest and income, and additional interest when markets are up.

To learn more about whether or not a fixed indexed annuity may be right for you, check out our newest educational video.

With so much focus on taking advantage of all available deductions, avoiding scams, and wading through forms and paperwork, it’s no wonder that so many of us feel overwhelmed during tax season.  However, there is an upside to tax season; namely, doing our taxes forces us to look back on the previous year and take stock of our financial situation, thinking through how we may want to adjust our financial goals moving forward.  A big part of this review should also take into consideration which of our investments and accounts are most tax advantageous.  Just skipping that 1099-INT for 401(k)s, IRAs, and annuities is enough to remind us that we don’t have to pay taxes on the interest we earn on these accounts.

Annuities, in particular, are attractive to many consumers from the standpoint of tax deferral because—unlike other tax-deferred accounts, such as 401(k)s and IRAs—the product has no limits on annual contributions.  That means you can put away more money for retirement.  This is equally useful for high earners and those that are closest to retirement age and may need to catch up.  With an annuity, all the money you invest compounds year after year without any tax bill. That ability to keep every dollar invested working for you is a big advantage over taxable investments.  When you eventually make withdrawals, the amount you contributed to the annuity is not taxed, but your earnings are taxed at your regular income tax rate.

For more information about how one type of annuity, known as a Fixed Indexed Annuity works, check out this educational video.

For more on information on how to compare taxable, tax-deferred, and tax free growth, click here to access our exclusive calculators.

One of the most common misconceptions about annuities is that to guarantee the monthly income payments you forego access to your principle in an emergency or to pass on as an inheritance.  Believing this to be true, people often take their chances on stocks or mutual funds, foregoing the opportunity to secure the guaranteed lifetime monthly payments provided by annuities. What these consumers fail to realize—or the professionals they are working with fail to tell them—is that annuities now have features that allow for much greater flexibility.  Known as a Lifetime Income Rider, this feature guarantees a lifetime income as well as allows retirees to dip into this income, should the need arise.  Of course, if you withdraw a certain percentage of your principal, your future monthly lifetime income payments may be similarly reduced.  Even so, now you have the best of both worlds—the flexibility to access your money should you need to while STILL guaranteeing your retirement income.

There’s no need to make compromises when it comes to your retirement.  Click here to see how others have used annuities to help them get the most out of their retirement.

There’s been a recent spate of news coverage from sources such as NBC, the Wall Street Journal, and Fox Business debating the merits of what is known as the 4% rule. Essentially, this rule of thumb states that a retiree can usually withdraw about 4% of the value of his or her portfolio each year without prematurely depleting the principal of the portfolio.  In light of stock market volatility, all time low interest rates, and retirees living longer, many financial experts are saying that you should reduce that 4% to 3% and put off taking social security.  All that being said, there are ways to make the 4% (or better) work to guarantee income throughout your retirement:

Let Insurance companies handle the 4% withdrawal concept for you with the guaranteed lifetime income stream  fixed indexed annuities provide. This will offer the following benefits:

1. These products often have lifetime income benefit riders that can offer a 5% or more withdrawal factor guaranteed for your lifetime.
2. You’ll know exactly what amount you will get paid on an annual basis for the rest of your life.
3. There’s no worry about the stock market crashing, interest rates declining, etc. You can sleep at night knowing that your money is safe and you will not run out, regardless of what percent you choose to take out each year.

So instead of worrying about running out of money in your retirement, you can spend your hard-earned time on more important things like seeing your family and loved ones, traveling, relaxing, and managing your health.

To learn more about fixed indexed annuities, click here.

Unfortunately, Americans have good reason to be concerned.  A recent report by the Center for Retirement Research suggests that, for the first time, a majority of Americans are headed towards a retirement in which they will be financially worse off than their parents.

But it doesn’t have to be all doom and gloom.  As is noted in a recent issue brief by the Heritage Foundation, there are products already on the market, such as annuities that offer those saving for retirement with a source of guaranteed lifetime income.  More specifically, products like fixed indexed annuities can help savers add some balance to their financial plans—particularly in risky markets—by providing protection when the markets are down and potential for additional interest when the markets are up, guaranteed interest, and guaranteed income for life.

This increased product quality is becoming evident in the sales of fixed indexed annuities, and satisfaction among those that purchase them.  Fixed indexed annuities have become a best-selling annuity product and a recent LIMRA study found that 83% of indexed annuity buyers were satisfied with their annuity purchase, and five in six would recommend annuities to family and friends.

Features like protection from stock market volatility,  the potential for additional interest when the market is up, and added benefits—like the guaranteed lifetime withdrawal benefits and long term care benefits—make considering a fixed indexed annuity now or in the future a smart choice.

To learn more about fixed indexed annuities, click here.

According to the blog post, many companies that provide this insurance have stopped selling new policies and will be issuing drastic price hikes to current policyholders, most notably in the form of gender-distinct pricing, which essentially penalizes women for having a life span that is on average five years longer than men.

With women making up more than three-quarters of those in assisted-living facilities and a majority of the recipients of home care, it is essential that planning for the uncertainties of long-term care factor heavily into overall retirement planning.  It is important for women in or nearing retirement to adjust their financial plan accordingly to account for these costly needs.

One of the most important steps to preparing for a time in your life when you may no longer be able to care for yourself is to ensure that you have a source of guaranteed income for life.  For example, a fixed indexed annuity—a tax-deferred product offered by life insurance companies—can provide a guaranteed lifetime income stream, even if the account balance falls to zero.  And, because interest credited to a fixed indexed annuity can be determined by a formula linked to a market index, the product offers the opportunity for increased interest over other traditional annuities.

You can also use the proceeds from certain annuities with qualifying riders with long term care benefits to pay for long-term care costs tax-free.

To learn more about fixed indexed annuities, check out this brief educational video.

And, not only are consumers buying more of these products, they are also happy with their purchase.  A recent LIMRA study found that 83% of fixed indexed annuity buyers reported being satisfied with their annuities and five in six would recommend annuities to others.

Even though the conversion requires savers to pay income taxes upfront when switching over to the Roth accounts, the government believes that thousands of 401(k) participants will find the conversion beneficial because they will not be on the hook for taxes at a time when they can least afford it.

It is important to consult with a tax and/or investment advisors about whether a Roth conversion is right for you.  If you are looking at a conversion to a Roth account, you may also want to consider doubling down with a fixed indexed annuity.  By including a fixed indexed annuity in your 401(k) Roth account, you can protect against loss of your initial investment and guarantee a minimum annual tax-free return.

And, if you decide a Roth conversion may not be right for you, don’t forget to ask about how a fixed indexed annuity might otherwise fit into your retirement planning. This product can ensure that you do not outlive your retirement assets and get the most out of the money you put in.