Fixed income and annuities: A safe haven in volatile times

[NickC810060]

As the market continues to experience volatility, people in or nearing retirement are seeking ways to protect their savings. Fixed income investments and annuities can provide a stable source of income and help mitigate the risks associated with market fluctuations.

• Fixed income investments such as bonds, CDs, and money market accounts offer predictable returns. While they may not generate the same level of growth as stocks, they provide a steady stream of income that can help cover essential expenses in retirement.

• Annuities are contracts with insurance companies that provide guaranteed income payments for a set period of time or for the rest of your life. Annuities can offer a number of benefits, such as:

  • Guaranteed income: No matter how the market performs, you will receive the agreed-upon income payments.
  • Tax-deferred growth: The earnings on your annuity grow tax-deferred until you start receiving payments.
  • Death benefit: If you pass away before you have received all of your annuity payments, your beneficiary will receive the remaining balance.

In addition to providing stability, fixed income and annuities can also help you:

• Meet your retirement income needs: Fixed income investments and annuities can provide a predictable source of income that can help you cover your essential expenses in retirement.
• Protect your principal: Fixed income investments and annuities are generally considered to be less risky than stocks. This means that your principal is less likely to lose value in a down market.
• Preserve your wealth: By investing in fixed income and annuities, you can help ensure that your wealth is passed on to your loved ones.

If you are looking for ways to protect your retirement savings, fixed income investments and annuities may be a good option for you. Talk to a financial advisor to learn more about these investments and how they can help you achieve your retirement goals. Always open to help and to answer any questions.

[sktn77a]

Beware of annuities.  They are high commission vehicles that are frequently sold inappropriately to retirees.  Fixed income annuities are fine as there's very little small print.  Just remember you generally lose control over your money forever.  Fixed index annuities and deferred income annuities are also OK if you use them for their guaranteed income rider.  But beware, there are many pitfalls with these vehicles and they rarely make any sense if you are using them solely as an investment.  Finally variable annuities should generally be avoided at all costs!