Teachers are among the hardest working professionals and have the unique responsibility to prepare our younger generations for the future. And, as educators across the country go back to school for another year, it’s a good time to give some thought to what life should be like for teachers once they’re outside of the classroom and on to retirement. That’s why we created a useful Q&A for teachers who are planning for retirement and how a Fixed Index Annuity (FIA) might be a good product to add to their portfolio.
Q: What is a Fixed Index Annuity and why should teachers consider one?
A: A Fixed Index Annuity is an insurance product that offers a benefit that provides an opportunity to receive a steady, guaranteed lifetime income stream at a future date like retirement while protecting the principal from the uncertainty of market volatility.
As a teacher who has depended on regular paychecks for years, a Fixed Index Annuity will let you continue to receive regular payments, allowing for a dependable and secure stream of revenue throughout retirement.
Q: Are FIAs a good product for teachers?
A: They can be. But, like any savings vehicle, a consumer should conduct thorough research and talk to their insurance agent to determine if FIAs are right for them. The beauty of an FIA is that its value will never decrease – it only has the potential to grow. Therefore, no matter the unpredictability of the market, you can be confident that your premium payments are secure. What’s more, annuities offer tax-deferred growth, which enhance the long-term value of the annuity. Of course, taxes are paid at the time payments are made to you from the annuity.
Q: Don’t I stand to receive higher returns from other products?
A: It’s certainly possible. There are a number of products that may result in higher returns – but with a greater reward often goes a greater risk. FIAs should be considered in the context of a wide, diversified portfolio. They stand as conservative, dependable option that can give retirees confidence as they leave jobs and careers that have long provided regular incomes.
Visit FIAinsights.org for more information and check with your financial professional to determine if a fixed indexed annuity is right for you.