TOWER BRIDGE FINANCIAL

What Is An Annuity?

An annuity could be a way for you to fund your lifestyle in retirement. So, what is an annuity? First, annuities come in a few different types. The major categories are fixed annuities, fixed index annuities (FIAs), and variable annuities. Fixed annuities give you protection of principal but a locked-in earnings rate. Variable annuities have a fluctuating interest rate and have no protection for your money. In other words, with a variable annuity, you can still lose your money in the market. An FIA, however, keeps your initial money safe, while still earning a reasonable rate of return. When the index associated with your FIA goes up, so do your earnings. However, if the index goes down, your FIA principal balance remains stable.

It may seem daunting to figure out which type of annuity is right for you. Or, if an annuity is even something you should consider. However, Tower Bridge Financial is here to walk you through the choices available to you. Also, we are upfront about fees, and take the time to explain how fees work in your current strategy versus how it might change in the future. In addition, we help clients understand their true rates of return on current portfolios in the stock market and its relate risk. Our approach uses balance, protection, and simplicity as key factors in a long-term retirement strategy.

Annuities - They Are Often Misunderstood.

Sometimes you’ll hear people say that annuities are bad. However, these opinions are usually due to the person misunderstanding what an annuity is all about. First, FIA’s can provide protection of principal. Next, they can generate a reasonable rate of return. In fact, because of this, many retirees use FIAs as their retirement income for life. In addition, an FIA has other benefits such as a potential death benefit, and options such as income riders. An income rider adjusts your monthly income payment upwards as costs rise. Overall, higher risk financial vehicels may have possible higher returns. But, they also come with the risk of losing your hard-earned money.

Importantly, not all annuities offer the same benefits. For example, a variable annuity can be just as risky as direct stock market investments. In other words, you can still loose your money with a variable annuity. At Tower Bridge Financial, we want to offer you ways to keep your retirement nest egg safe. To do this, we work with insurance companies who offer FIAs, as well as fixed annuities. These top players in the industry allow retirees to feel confident about not running out of money in retirement.

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Answering the Question,
"What is An Annuity?"

To walk you through the details of how “safe money” strategies work, we offer complimentary seminars. During these events, pre-retirees and retirees have an opportunity to enjoy a delicious meal while learning all about retirement strategies. We cover “what is an annuity?” as well as discuss risk tolerance, potential tax issues, and the newest regulations impacting retirement today. You may also schedule an appointment to meet with us individually. In our meeting, we’ll discuss your specifics, and help work on a plan for safety, security, and long-term retirement success. Topics include:

  • Steps and stages of retirement
  • Why cash is king
  • Planning for emergencies
  • What is your risk?
  • Budgets and income planning
  • And much more

Annuities Have Changed​

In years past, there was a limit to what an annuity could do. Back then, you may have had security, but most products had a very low-interest rate, too. Sometimes the rate was better, but then you had a risk of losing your money in a down market. Neither were great options. So, newer products now give you both safety and returns. You protect your money, yet still can get a reasonable rate of return. The industry has made some big changes. In fact, many of them are for the better.

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Red or Green - What Does It Mean?

When we say something is “in the red,” it usually means it is negative. If you have a certain amount of money, and the money goes below the original balance, it is “in the red.” However, FIA’s are different because they do not lose your money if the market goes down. Instead, they are “green line” strategies. Protection is a key component of staying in the “green.”

Reach Out - We're Here To Help

Want to learn more?
Register for one of our no-cost seminars. Or, call us to schedule a meeting. Let’s talk about solutions that are right for you.
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