The Best Safe Investments For Seniors

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Fixed-indexed annuities Are The Safest Investment for Seniors

Fixed-indexed annuities (FIAs) are often considered one of the safest investment options for retirement planning. Here’s a comprehensive look at why they stand out:

1. Protection from Market Volatility

FIAs offer a unique blend of security and potential growth. They provide protection against market downturns, ensuring that your principal investment is not directly exposed to stock market fluctuations.

  • Shield Against Downturns: FIAs provide a buffer against market losses. Your principal is not directly invested in the market, safeguarding it during economic downturns.
  • Stability in Economic Fluctuations: Regardless of market conditions, your initial investment remains intact, offering a sense of financial security.
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2. Potential for Higher Returns

Unlike traditional fixed annuities, FIAs have the potential to earn higher returns based on stock market indices, like the S&P 500. This means you can benefit from market upswings without the risk of direct market investment.

  • Index-Linked Growth: Returns are based on the performance of a stock market index, which can provide higher growth compared to traditional fixed annuities.
  • Cap and Floor Rates: These rates set the maximum gains and protect against losses, balancing potential growth with risk management.
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3. Guaranteed Income Stream

FIAs can provide a guaranteed income stream for life, offering peace of mind that you will have consistent financial support throughout your retirement.

  • Lifetime Income: FIAs can be structured to provide a steady income for the rest of your life, ensuring financial stability.
  • Predictable Payments: You know in advance the amount you’ll receive regularly, aiding in financial planning for retirement.
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4. Tax-Deferred Growth

The funds in an FIA grow tax-deferred, meaning you don’t pay taxes on the earnings until you withdraw them, potentially leading to more compounded growth over time.

5. Flexibility in Investment

FIAs offer various options for indexing strategies, allowing you to tailor your investment according to your risk tolerance and financial goals.

  • Choice of Indices: You can choose from a variety of indices to link your annuity, allowing for a tailored investment strategy.
  • Adjustable Allocation: You have the option to change your indexing strategies over time, adapting to changing financial goals or market conditions.

6. Death Benefits

Many FIAs include death benefits, ensuring that your beneficiaries will receive a specified amount in the event of your passing.

  • Financial Security for Beneficiaries: Offers a guaranteed amount to your beneficiaries, separate from your estate.
  • Customizable Options: Many plans allow you to tailor the death benefit to meet your specific estate planning needs.
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7. No Direct Investment in the Market

Since your money isn’t directly invested in the stock market, you avoid the fees and complexities associated with typical market investments.

  • Reduced Investment Risk: Eliminates the need to actively manage stocks or mutual funds, reducing your investment risk.
  • Simplicity: Offers a straightforward investment option without the complexities of direct stock market involvement.
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8. Liquidity Options

Some FIAs offer liquidity options, such as withdrawal benefits, which can be valuable if you need access to your funds for unexpected expenses.

  • Emergency Access to Funds: Some FIAs provide options for withdrawals, which can be crucial in financial emergencies.
  • Flexibility in Withdrawals: Certain plans allow for annual withdrawals up to a specified percentage without penalties.


Fixed indexed annuities provide a balanced approach to retirement planning, combining the safety of a traditional annuity with the potential for higher returns linked to market performance. They offer a stable, tax-efficient, and flexible way to ensure a steady income stream in retirement. For a deeper understanding of how FIAs can fit into your retirement strategy, contact us today for a free quote.

Safe Investments For Seniors

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Questions From Our Readers

Where is the safest place to put your retirement money?

The safest place for retirement money varies per individual, but Fixed Indexed Annuities are often preferred for their market protection, guaranteed interest rate, guaranteed income, and tax advantages.

I am 69 years old with $200k I want to get the highest income no risk at all?

Purchasing a Fixed Indexed Annuity (FIA) with a Guaranteed Lifetime Withdrawal Benefit (GLWB) can be a viable option for generating a steady income in retirement with limited risk. FIAs offer the potential for growth tied to a stock index while protecting your principal from market downturns. The GLWB ensures a guaranteed income stream for life, regardless of market performance.

At 74 and retired, what is the safest way to increase your monthly income?

One option is to purchase or roll over into a new Fixed Indexed Annuity (FIA) with an increasing income rider. This type of annuity provides a payout that increases annually, depending on the specific terms of the rider. As a result, your monthly income will grow each year, and the payments are guaranteed not to decrease as long as you make no additional withdrawals.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, 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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