Americans are living longer and spending more time in retirement. In fact, the average American will be retired for 18 years. A retirement nest egg is probably the largest amount of money you will ever need to accumulate. How will you do it?

There are many options available to fund your retirement, stocks, bonds and mutual funds and bank savings to name a few. A company pension plan and Social Security are traditional sources of retirement income, but it seems they are becoming less reliable. Each of these options offers benefits, but none appear to satisfy all retirement concerns.

Of all the options, a traditional fixed annuity and equity-indexed annuity could be the best alternatives to help fund your retirement, and provide a firm foundation of a sound financial plan.

There is a large portfolio of fixed and equity-indexed annuity policies offered by nearly every life insurance company to help meet specific financial goals. Every policy offered places an emphasis on long-term, enhanced values and features an array of living benefits. 

Fixed annuity benefits include:

Safety of principal - A fixed annuity earns a fixed interest rate that is guaranteed by the issuing insurance company. Since you do not invest in a variable product, your principal is never at risk. Tax-deferred accumulation - You don't pay taxes on the earnings in your annuity until you begin to take the money out. Over time, the deferred compounding earns interest on increasingly larger balances. No cap on contributions - You can put unlimited amount of your after-tax dollars into a non-qualified annuity. This option particularly suits those who for some reason have not been able to save for retirement and also those who are not covered by an employer-sponsored retirement plan, such as 401(k). Flexible payout options - You can choose to receive the value of your annuity immediately or take distributions over time. Access to funds during emergencies - In states where they have been approved, two riders can be added to annuities at no charge: Living needs benefit rider - If you are confined to a nursing home or become terminally ill or disabled, you can immediately access your money without incurring surrender charges. Unemployment benefit rider - If you become unemployed, you may make a one-time, surrender charge free withdrawal for up to 50 percent of your cash value. Freedom from the cost and delay of probate - Upon your death, your annuity will usually pass to its named beneficiary. Make sure that you have a properly named beneficiary other than your estate.

Benefits of Equity-Indexed Annuity include: 

• All the benefits of a traditional fixed annuity mentioned above, and
• Best of both worlds - Guarantee of principal with a minimum interest rate guarantee and the potential to participate in a market-driven investment[the Standard & Poor's 500 Index and the Nasdaq-100 Index mostly] with attractive returns. You participate in the gains but never in the losses.

In other words, fixed and equity-indexed annuities are safe, risk-free ways to plan for a comfortable retirement. The money is protected, and you can get a guarantee that you'll never outlive the income you receive from the annuity.

For more information and to find out which annuity will suit you best, please contact us. We represent top-rated carriers to serve your need. The service is absolutely free. Insurance companies pay us for serving you. 

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