Many folks fear the nightmare scenario of outliving their retirement savings. In spite of this fear, most people place all retirement funds into securities, through mutual funds.
Regardless of the fund investment profile (small cap, large cap, sector-based, international etc.), investing in securities exposes the fund’s principal to market fluctuation. Put simply, mutual funds can lose money.
If you are retired and your retirement funds lose money, you may have a hard time recouping those losses.
To build a sustainable retirement nest egg, you should hold a diversified portfolio. Annuities can help round out a portfolio. These investment vehicles can guarantee long-term competitive interest rates without the risk of losing principal.
The best annuities for a retirement portfolio are low-risk fixed and indexed annuities, which enable you to lock-in an interest rate.
The fixed and indexed annuities, which Sherwood represents, offer you several key benefits:
• The annuity sponsor offers principal protection (you will not lose your investment)
• The annuity sponsor locks-in a base interest rate (the annual rate either remains the same or increases, but never decreases)
• If structured correctly, the interest principal is tax deferred, and
• In some case, the annuity can provide a death benefit to your heirs.
Is a Fixed-Indexed Annuity Right for You?
In general, annuities can work well for high-income individuals who need to shield additional money from taxes. These investments also work well for individuals who have maxed out their existing tax-advantaged retirement accounts, such as IRAs and 401(k).
If you would like to discuss whether annuities would be helpful for you, please contact us.
The company serves clients throughout the Washington DC metro area from its convenient main office in Tysons, Virginia at:
8133 Leesburg Pike, Suite 400
Vienna, VA 22182.
Phone: (571) 765-4120