Do you have clients nearing retirement who are calculating their anticipated income need? While there are many time-tested strategies available to help clients save for their retirement goals, there are still many unknowns that may weigh heavy on even the best-made retirement plans.

Annuity Sales Consultant

Longer life expectancies, market uncertainty, inflation, and escalating health care costs pose a challenge for planning long into the future.

A solution to provide a stable bedrock within the plan can be a Fixed Indexed Annuity (FIA).  Backed by the financial strength of the issuing insurance company, a FIA offers a guarantee of principal, protection from market downturns, and tax-deferred growth based on positive changes in an external index.  Many contracts also offer a guaranteed lifetime income stream without having to annuitize the contract.

While FIAs are frequently used for these guaranteed income benefits, they also hedge against the loss of purchasing power due to rising inflation rates.  Annuities can be “laddered” to create an increasing income plan where additional “income rungs” are activated when additional income is needed.  Laddered plans typically utilize a combination of annuities with the 2nd and 3rd rungs often using guaranteed roll-up features found in FIAs.  These roll-ups can ensure income that will keep pace with, or possibly exceed inflation. 

Diversifying a plan using FIAs can make the overall plan less volatile and create a steady income stream, all while preserving purchasing power.  The next time you discuss retirement planning with your clients, give the experts at Wholehan Marketing a call to discuss how FIA’s can provide these benefits.