Curious about fixed indexed annuities? Here are a few facts about them.
In our commitment to making our clients’ money go further, Silverhawk is constantly monitoring the economic environment, including government regulations and taxation policies as well as the changing landscape of financial opportunities.
FIAs are just small one tool in a complete arsenal of strategies we use to help you. Here are some of the benefits of fixed indexed annuities, and why we sometimes recommend them as part of a balanced portfolio.
- Protection and safety
A lot of people lost money in the stock market in 2008. However, no one with an FIA lost money. Some financial experts believe that FIAs more closely approximate bonds, CDs or savings accounts in terms of safety, even though they are not backed by the government. Fixed indexed annuities are backed by the insurance company which underwrites them, and unlike variable annuities, do not directly participate in the stock market. Some of the insurance firms offering FIAs have been in business for more than 150 years.
- Tax-deferred growth
Much like 401(k)s, traditional IRAs or other defined benefit plans, some FIAs earn interest which is not taxed until withdrawn. In fact, many of the same tax rules apply.
- Interest and accumulation potential
Too many baby boomers and retirees have money sitting in CDs or savings accounts where they’re typically earning only 1-2% interest. Annuities offer the chance to protect principal while participating in a higher return rate linked to the market.
There are attractive annuity riders which offer lifetime income, long-term-care coverage and joint or spousal survivorship, in addition to many other options.
It is important that you work with a financial advisor to develop a complete financial plan. At Silverhawk Wealth Management, we have more than 50 years of combined experience advising high-net-worth individuals, closely-held corporations, physicians, professional athletes and celebrities, tax attorneys and CPAs. Our mission is to plan, grow and protect the assets of high-net-worth clients.
Email or call us for more information: Silverhawk Wealth Management in Scottsdale
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If you’d like to read more about FIAs, download this whitepaper: FAQs for FIAs: What Is a Fixed Indexed Annuity?