Indexed annuities help retiring Boomers be financially ready.

According to a recent report from the Insured Retirement Institute, many Baby Boomers don’t feel financially ready to retire:

  • 51% believe they will not have enough money to live comfortably
  • 70% believe they will not have enough money to pay for long-term care
  • Only 58% have determined the amount they will need to retire on
  • Less than 45% have ever consulted a financial advisor

An indexed annuity is one safe money option for many Boomers to consider. Here are some reasons why:

  • You cannot outlive the income stream. As a type of fixed annuity, Indexed annuities offer a steady, guaranteed lifetime income.
  • You are protected from the downside risk of volatile markets.  Your principal never decreases in value, so you cannot lose the money you put into the annuity.
  • It’s not all about risk aversion. Your money can also grow with a rising index up to the interest earnings rate cap agreed upon in your contract.
  • The interest you earn, you keep. Interest cannot be lost due to market volatility or interest rate adjustments. And earnings are tax-deferred which can mean a greater return over the lifetime of the contract.

As with any investment, do your homework, talk with your financial advisor or others you trust to determine the best financial strategy and products for you and your family.