Fixed Indexed Annuity: When you desperately need help planning for retirement

The greatest fear of most retirees is the risk of longevity: outliving their money. The meltdown of retirement accounts, rising medical costs, uncertain entitlement programs and higher taxes have added to the risk. Facing 30 years of retirement living on past savings and Social Security benefits is a scary reality. What can be done?

To handle other unaffordable risks you buy insurance. The same companies that protect your home, life, health and auto can also protect you from the risk of longevity. The basic principle of all insurance that makes coverage affordable is “pooling of risks”. Since the greatest fear of retirement is outliving your money and your remaining life span is uncertain, the solution is to insure the unaffordable risk. Let’s see how this is done.

Insurance companies issue fixed annuities, which can be turned into guaranteed lifetime incomes. You can accumulate your retirement money in an annuity over time, or you can fund the annuity lump-sum. Fixed annuities are backed by the assets of the insurance company, guaranteed to give you a positive rate of return which is free of income taxes until the earnings are withdrawn, and offer you numerous other choices. At the date you select, you can turn your annuity into a lifetime of monthly checks you cannot outlive. The insurance company guarantees you a lifetime of income, regardless of how long you live. You can later change your mind, stop the income and take your money lump-sum. If you die prematurely, your heirs are paid the balance of your account.


With an annuity, you can have a guaranteed income stream, immune to market gyrations. This income stream will give you the ability to budget for your finances in retirement, even allowing for things such as vacation funds...

Fixed Indexed Annuities can give you a chance to positively change your future.

Combine your guaranteed lifetime income with Social Security benefits, and you have a comfortable and safe retirement with very little planning.

Call Mintco Financial Advisors today and ask about a fixed annuity with a Guaranteed Lifetime Income Benefit Rider.

Phone: 813-964-7100 or visit the website www.MintcoFinancial.com

Fixed Indexed Annuity: protection of principle from loss

The main purpose of a Fixed Indexed Annuity (FIA) is protection of principle from loss.  The FIA protects your principle while crediting interest to your account. 

You don’t own the risk the insurance company owns the risk.  The return is generally linked to an index like the S&P 500.  The real advantage is that it gives you the investor the option of in between the low interest rates of the bank and the high risk of the market. 

One of the strategies that can be effective for FIA’s is a short term laddered approach.  They do have surrender charges and offer different liquidity features depending on the company and product.  You need to make sure that you find the fixed indexed annuity that is just right for you and understand all the disclosures.

Indexed Annuity Example

Harry invests $100,000 in a seven-year indexed annuity contract with a 70% participation rate and a 12% cap. In the first year, the index is based on the S&P 500 and rises a whopping 30% for the year. Harry’s total gain is limited to 12%, because the total gain from the participation rate exceeds this amount (70% of 30% = 21%).

Some contracts will keep the gains from one year and reset the caps each year, while others calculate gains on a cumulative basis for the term of the contract. State law requires that indexed contracts provide investors with at least a small amount of guaranteed interest as a form of consolation if the underlying benchmark index does not rise during the term.

Should You Consider an Indexed Annuity?

Indexed annuities should be considered by any investor who seeks higher returns than those offered by traditional guaranteed instruments, but cannot afford to risk losing principal. However, you must be comfortable enough with absorbing the loss of any real gains if the underlying benchmark index upon which the contract is based does not perform well during the contract term. Older investors who still need some exposure to equities are prime candidates for these vehicles.


If you have any question or want to discuss more if fixed indexed annuity is right for your portfolio, please do not hesitate to call us at 813-964-7100.

Mintco Financial Team of Independent Advisors will be glad to help you. We are independent and fiduciary advisors. We work for YOU, not for banks.

Visit our website at www.MintcoFinancial.com

Why Fixed Index Annuities?

Questions? Call us today at 813-964-7100 or email:anecamara@mintcofinancial.com

With the continued instability of the markets, annuities are now becoming a popular sought product. As you may know millions of people have lost money or experienced a decline 401k balance over the last few years. Many other people have lost money in the volatile stock market and even mutual funds.

Returns from investing in the Bond Market are almost next to nothing. In fact inflation is eating up any tiny profits gained from the safety of the bond market.

So where could someone, like you, put their money where it is safe, yet provides very good returns and ultimately provides you with income?

In the past annuities where not the preferred option for one to roll money into. Now in 2011 and beyond, fixed indexed annuity products are very popular! Why? Insurance companies have finally listened to what the public wants. They have created a new portfolio of annuity products that provide you with a wide range of options and riders.

Lets start with safety... In a fixed index annuity the returns on your money are based on movements in the indexes, like the S&P 500 for example. When the market goes up so do your rate of return. However if the index go down and I don't care how far down they go, you NEVER lose your intial money (principal) paid into the plan. So you earn money into your account when the market is up and if it is down - your prinicipal is protected.

With a Fixed Index Annuity, you get; safety and guarantee of principal and credited interest and the the potential of higher interest by being linked to the market—the return potential that a fixed-rate product cannot offer.

Now you can have the best of both worlds: guarantee of principal and the potential of market-linked growth with no risk of loss of principal due to market downturns. Enter the fixed indexed annuities concept, it's designed to help you reach your retirement goals.

Here are some other benefits to serious consider when rolling your 401k and or high balance CD into fixed indexed annuities:

Safety and Guarantee of Principal
The Power of Tax Deferral Guaranteed Lifetime Income
Potential of Stock Market-Linked Growth

Fixed index annuities have the potential for market-linked interest without exposure to the market risk. Contract owners enjoy the guarantees and safety of principal even while being linked to market growth. However, they should not expect fixed index annuities to mirror the exact performance of any stock market indices.

Feel safe and secure! Call us today for a full review of your retirement planning! 813-964-7100 or email us with your questions: anecamara@mintcofinancial.com

www.MintcoFinancial.com 

Fixed Indexed Annuity

There are five excellent reasons to consider a fixed indexed annuity as a component of your retirement income plan. An insurance carrier is able to provide each of these five advantages to you as long as you are able to make a time commitment to the carrier.

Possible reasons to consider a fixed indexed annuity

• Safety from market losses
• Growth potential
• Tax advantages
• Income guarantees
• Beneficiary planning advantages

The foundation upon which these advantages are provided

• A time commitment during which you will have limited liquidity

Possible additional benefits

• Up-front premium bonus
• Return of premium features
• Bailout features 

Contact us for a complimentary full review of your retirement plan at 813-964-7100 or 716-565-1300
email us at anecamara@mintcofinancial.com
www.Mintcofinancial.com