People will tell you myths about fixed index annuities with income riders, because they don’t really understand how they work, or because they want to sell you something else.
Myth #11- Your income will never increase. NOT TRUE. Some plans offer guaranteed lifetime income with the potential for annual increases that get locked in for life.
Myth #12- Other traditional Wall Street type assets will guarantee your principal against losses, provide guaranteed lifetime income, and provide opportunity for growth. NOT TRUE.
Fixed index annuities with income riders, provide these benefits, stocks, bonds and mutual funds don’t.
Myth #13- Annuity companies aren’t safe, they fail all the time and people lose their money. NOT TRUE. No one has ever lost any of their guaranteed principal from an insurance company failing.
Myth #14- All annuities are bad and are the worst thing you could buy. NOT TRUE. It provides 100 percent protection against stock market losses, lifetime guaranteed income, and the opportunity for competitive returns without risk, with remaining assets at death passing to your beneficiaries.
Myth #15- It’s simply too good to be true. NOT TRUE.
With a fixed index annuity with an income rider, you will have protection against all stock market losses, income guaranteed for life and the opportunity to make money when the market goes up without risking principal or gains in the future.
The disadvantages include: surrender charges, gains aren’t guaranteed, fees, and guarantees are backed by the financial strength of the issuing annuity company.
If you want to learn how a fixed index annuity with an income rider could fit into your plans for retirement, call us.
Vipul Varma
VIP Financial
402.547.0395
Financial Advisor in Parker Colorado
Wealth Management