Retirement Planning in Bucks County

these insurance products offer a fixed interest rate over time which is generally higher than the certificates of deposit issued by banks.  Not only are these products a great way to save money for the future, some also offer the ability to defer taxation until a later date and protect your principal from stock market crashes.  Conservative investors appreciate them for their guaranteed growth, low risk, and their lack of fees.

These retirement planning products function in a very similar manner to a fixed annuity, except their growth rate is tied to an underlying stock market index, like the S&P 500. When that index is in the positive, the investor will see higher growth than what can be achieved by a fixed annuity.  On the other hand, if the tied stock market index is down, growth can drop to as little as 0%, although principal will always be protected from loss with this type of contract.  A fixed-indexed annuity will also usually have a cap or spread to limit growth to a certain percentage.  These types of contracts can be quite complex, so it’s best to discuss them with our retirement planners before you commit.

This contract could almost be called “reverse life insurance” because it takes a lump sum payment and converts it into regular income payments over a period of time.  As the name suggests, these payments can begin as early as one month after the lump sum is received.  For those who already have a large nest egg saved up, an immediate annuity can offer tax deferment and a lifelong income stream, among other benefits.  Qualified retirement planners like the ones at Reliable Financial can help you determine if this type of annuity will work for you.

If you want to delay your payments until a later date, a deferred annuity might be perfect for you.  They are generally a more affordable annuity option, and may be appropriate for your retirement planning under a specific set of circumstances.  If you want to find out if a deferred annuity makes sense for you, our retirement planners can give you all the information you need to make an informed decision.

This type of insurance contract can be very complex, so it’s difficult to define it in general terms.  While these do offer some of the same benefits as other annuity products, they also usually include hefty fees and other expenses that can eat into your growth or even put you into the negative.  These products are generally considered to be unsuitable for retirement saving but they may make sense for people in specific situations.  If you’re considering this type of annuity, it’s best to discuss it with our retirement planners before you make any decisions.