Counting on bonds for retirement income? It worked for your parents, but it probably won’t work for you. Bond rates are at generational lows and less likely to keep up with inflation than ever before. Dividend strategies can create income, but can leave your principal at significant risk.
Today’s retiree’s need a mix of assets and safe income strategies to secure their retirement.
Bonds are no longer a solution for stable and growing retirement income.
In 1983, you could put a million dollars into a safe US Treasury bond and get $130,000 a year for up to 10 years out of it. Today, that same 10 year risk free US Treasury bond will get you about $10,000 a year, for a million dollar investment!
Fixed Index Annuities (“FIA”) can give investors guaranteed income for life without stock market risks. Income paid by an FIA may increase over time, sometimes significantly. They can be used as part of a larger financial plan to protect the income you need now and in the future. They can anchor retirement portfolios the way bonds used to. Stability, income, no risk to your nest egg.
When combined with dividend stocks, growth stocks and select bonds, fixed index annuities can guarantee the income you need in retirement, while allowing the rest of your portfolio to grow without being burdened by withdrawal demands to fund your lifestyle.
Annuities pay income as long as you live. They can be used to protect against stock market declines and provide safe retirement income.
What’s the bottom line? You need to create safe income for life to take you through retirement. Bonds can’t get you there and while stocks can earn good returns over time, they are unpredictable. So, you need a way to supplement social security that doesn’t risk your future. Combined with an effective investment strategy, The right fixed index annuity could take a lot of stress out of your future, making it easier to enjoy dividends from your stock portfolio without the worry of a market crash.
There are many annuities out there, and most aren’t great solutions. Talk to a planner and learn what to avoid.
Testimonials: See how real people are using annuities to protect their retirement and get the lifestyle they’ve earned.
- What Fixed Annuities are good for:
1. Guarantee the income needed to successfully retire.
2. Removing or reducing retirement risk due to stock market fluctuations.
3. When you need to protect your principal, and conservative growth in your portfolio is enough.
4. Minimizing or eliminating the need to make withdrawals from your stock & bond investments.
5. Can defer taxes on investments.
- What Fixed Annuities are NOT good for:
1. Aggressively increasing the size of your investment portfolio.
2. Leaving a legacy to the next generation (unless you aren’t healthy enough to get term life insurance).
3. Keeping up with the stock market.
4. All of your retirement money.
Need some help understanding what solution fits your retirement best? CLICK HERE to talk to a planner and compare bonds, dividend payers, stocks and fixed index annuities to get guaranteed, SAFE income and growth. Get a strategy that fits YOU and the retirement you have earned.
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