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 #6- You can’t get any growth . NOT TRUE. When your index goes up you have the opportunity to earn competitive returns for a low risk asset, and when your index goers down you lose NOTHING.
Myth #7- You can lose principal in a stock market crash. NOT TRUE. Your principal and past earnings are 100 percent protected from all stock market losses. If the market crashes 50 percent, you lose 0 percent.
Myth #8 – You lose total control of your assets. NOT TRUE. As the plan allows you can turn on income, take penalty-free withdrawals, change beneficiaries, surrender your contract, change indexing options, and pass all remaining assets to your beneficiaries.
Myth #9- The stock market will always beat annuity returns. NOT TRUE. When the stock market produces a negative return, you will earn 0 percent in the annuity, a better return.
Myth #10- Your income isn’t really guaranteed for life. NOT TRUE. Your income will not end regardless of how long you live, if the stock market crashes, or if your account goes down to zero dollars.
You can protect your savings from losses & receive lifetime income, but could incur surrender charges, gains aren’t guaranteed, you’ll pay a fee, and guarantees are backed by the financial strength claims paying ability 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.
VIP Financial
402.547.0395
Financial Advisor in Parker Colorado
Estate Planning