An Index Annuity is an insurance product that can provide tax deferred growth for retirement. Index annuities can also guarantee a specific amount of income in retirement for as long as you live utilizing the Annuitization option of your annuity. What we prefer to do is utilize a Life-Time Income Rider which could give you more control over your income and the amount of income you may receive.
Fixed Annuities by their very nature are considered a conservative alternative to other investments that bear more market risk. We believe that an Index Annuity can provide a reasonable rate of return while preserving your retirement savings. Fixed and Index Annuities still have their risks, though. You may not lose your principal during tough market conditions while investing in a Index Annuity or Fixed Annuity, but your principal could erode over time due to high inflation and early termination of your annuity.
At Tradewell Tax & Financial we take things slow. We focus on getting to know you and your long-term income needs and retirement goals. If an Annuity is suitable, we then, together, seek the very best product to meet those goals. We believe in many instances that our clients are more concerned with and never go backwards with their savings.
Here are some possible benefits of an Index Annuity:
Most annuity companies allow penalty-free withdrawals on an annual basis from your annuity contract. Typically these amounts range from 5-10% per annum. With these restrictions, sometimes it may not be suitable to put a substantial percentage of your retirement into an Index Annuity, if any at all. All annuity companies have different restrictions and benefits as it relates to withdrawal options. We want to make sure that whichever annuity you choose, will meet your liquidity goals well into the future.
Certain riders that may be available in a Index Annuity could increase this liquidity in the event of a confinement to a nursing home or diagnosed with a terminal illness.**
Annuities are best suited for long term investors. Any strategy utilizing investments carries an inherent element of risk. Withdrawals from an annuity prior to age 59 1/2 are subject to a 10% tax penalty in addition to income taxes on earnings.
* Guarantees are based upon the claims paying ability of the underlying insurance agency.
** Riders are available as an addition to a purchase of an annuity contract, however, there are additional costs associates with the addition of a rider.
Mike Albertson is an Investment Adviser Representative. Advisory services offered through Secure Asset Management, LLC (SAM) a Registered Investment Adviser.
Bryan Putt is an Investment Adviser Representative and a Registered Representative. Advisory Services are offered through Secure Asset Management, LLC (SAM) a Registered Investment Adviser. Securities are offered through Aurora Securities, Inc. (ASI) Member: FINRA/SIPC.
Tradewell Tax and Financial is not an affiliated company of (SAM) or (ASI).
Representatives of Tradewell Tax and Financial are authorized in states where they are properly registered. Mike Albertson: FL, IN, KY, OH, SC and Bryan Putt: IN. Clients who are not residents of these states cannot be serviced.
This website is not intended to provide investment, legal, or tax advice, nor to effect securities transactions or to render personal advice for compensation. Tradewell Tax & Financial is not engaged in the practice of law. All insurance recommendations offered through Indiana Tax Advisory Group, Inc. Mike Albertson is President of Indiana Tax Advisory Group, Inc.
There are no assurances that you will achieve your investment objectives. All investment strategies have the potential for profit or loss. Changes in investment strategies, economic conditions, contributions, or withdrawals may materially alter the performance of your portfolio. Past performance is no guarantee of future success. We provide no guarantee that any portfolio will match or outperform any benchmark.
Recommendations and advice are based on information provided by the client that is presumed to be accurate. The financial planning process is not stagnant and must be adjusted based upon changes in the client's personal and financial situation, liquidity needs, investment objectives, and risk tolerance. Clients are responsible for notifying us immediately if their personal and financial circumstances or goals change.