Retirement Planning and Income Protection

Shawn Plummer

CEO, The Annuity Expert

What is a Retirement Income Protection Plan?

A Retirement Income Protection Plan is a strategy designed to ensure financial stability during retirement. It typically involves a mix of savings, investments, and insurance products to provide a steady income stream and protect against market volatility and longevity risk.

Retirement Income Protection Plan

How do fixed-indexed annuities with GLWB Work for Retirement Savings Protection?

Fixed Indexed Annuities (FIAs) with Guaranteed Lifetime Withdrawal Benefits (GLWB) are financial products that offer both retirement savings protection and income. They provide:

  • Market Protection: FIAs are linked to a stock market index but protect against market downturns. Your principal is typically safe from market losses.
  • Income Guarantee: GLWB ensures a steady income stream for life, regardless of market performance.

Benefits of Using Fixed Indexed Annuities with GLWB

  1. Stable Income: GLWB provides a predictable and stable income.
  2. Inflation Protection: Some FIAs include features to adjust income based on inflation.
  3. Flexibility: Offers various options for investment and withdrawal.

Considerations Before Investing in Fixed Indexed Annuities with GLWB

  • Fees: Understand the fee structure, as it can impact returns.
  • Liquidity: FIAs often have surrender charges or limited access to funds.
  • Complexity: Ensure you understand the product’s features and terms.

Example of Retirement Income Protection with FIAs and GLWB

Suppose a retiree invests $100,000 in an FIA with GLWB. They receive a guaranteed annual withdrawal percentage (e.g., 5%) regardless of market performance. This provides them with $5,000 per year while their principal remains protected against market losses.

Fixed Indexed Annuities With Glwb

Comparison of Retirement Income Options

Income SourceStabilityMarket RiskPotential GrowthLiquidity
Fixed Indexed Annuities with GLWBHighLowModerateLimited
Traditional SavingsModerateNoneLowHigh
Stock InvestmentsLowHighHighHigh
BondsModerateModerateLowModerate
Retirement Savings Protection

Conclusion

Choosing a retirement income protection plan involving fixed-indexed annuities with GLWB can offer a balance of income stability and protection against market volatility. It’s crucial to understand the product’s specifics, including fees and liquidity, to ensure it aligns with your retirement goals. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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