Young Adult’s Guide To Annuities

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

The Safe Portion Of Your Portfolio

As a young adult planning for retirement, ensuring a balanced and secure portfolio is crucial. You need a blend of growth and stability to safeguard your financial future. Annuities offer a unique opportunity to secure part of your retirement savings with guaranteed returns and minimal risk. Here is why fixed-indexed annuities (FIAs) and multi-year guaranteed annuities (MYGAs) should be part of your retirement strategy.

Can I Buy An Annuity At 30

Fixed-Indexed Annuities (FIAs)

  • What Are They? FIAs provide returns based on the performance of a market index, such as the S&P 500, without directly investing in the market. This means you can enjoy potential market gains while protecting your principal from losses.
  • Safe Growth: FIAs offer higher returns than traditional fixed annuities while guaranteeing you won’t lose your initial investment. This ensures your retirement savings grow safely and steadily.
  • Bond-Alternative: FIAs serve as bond alternatives, providing steady growth and reducing overall portfolio risk. They strike a balance between risk and reward, making them an excellent choice for young adults.
  • Flexibility: FIAs allow participation in market gains up to a certain cap, providing growth potential with security. This makes them ideal for long-term planning in a fluctuating market.

Multi-Year Guaranteed Annuities (MYGAs)

  • What Are They? MYGAs are fixed annuities that provide a guaranteed interest rate for a specified number of years.
  • Interest Rate Environment: MYGAs can be a good option in a high-interest rate environment, as they lock in those rates for the duration of the contract. However, they are less attractive when interest rates are low.
  • Safety: MYGAs offer a predictable, guaranteed return, making them a safe component of your retirement portfolio.

Annuities That Are Not Ideal For Young Investors

Immediate Annuities

Immediate annuities start paying out almost immediately after you make a lump-sum payment. They are great for retirees needing immediate income but not suitable for young adults still in the accumulation phase of retirement planning.

Deferred Income Annuities (DIAs)

DIAs require you to pay now and receive income later. Frequent changes in interest rates and tax laws make locking in rates for the long term less attractive for young adults.

Variable Annuities

Variable annuities offer the potential for higher returns by investing in various sub-accounts similar to mutual funds. However, high fees and expenses make them less attractive than direct market investments.

How We Can Help

At The Annuity Expert, we understand the complexities and challenges young adults face when planning for retirement. For 15 years, we have been an insurance agency, annuity broker, and retirement planner dedicated to finding the best solutions at the lowest costs.

We believe in providing secure, reliable financial products that offer growth potential without exposing your hard-earned savings to unnecessary risks. Your goal is to build a robust and secure retirement portfolio, and we’re here to help you achieve it.

Annuities For Young People

What We Recommend

  • Step 1: Initial Consultation Contact us for a free consultation. During this meeting, we’ll assess your financial situation, retirement goals, and risk tolerance. The main benefit is that you’ll gain clarity on how to proceed with your retirement planning.
  • Step 2: Customized Plan Development Based on our initial consultation, we’ll develop a customized retirement plan tailored to your specific needs. This plan will include recommendations for FIAs and MYGAs where appropriate. The main benefit is a personalized strategy designed to maximize your retirement savings safely.
  • Step 3: Implementation and Ongoing Support We’ll guide you through the implementation process, ensuring you understand each step and how it benefits your retirement goals. Our team will provide ongoing support, adjusting your plan as needed to keep you on track. The main benefit is a secure, well-managed retirement portfolio that grows steadily over time.

Features We Provide:

  • Personalized Advice: Tailored recommendations based on your unique financial situation.
  • Secure Products: Access to top-rated FIAs and MYGAs that offer safe growth.
  • Ongoing Support: Continuous monitoring and adjustments to keep your retirement plan on track.
  • Expertise: 15 years of experience in insurance, annuities, and retirement planning.

Common Objections:

  • High Fees: Our products offer competitive rates and fees, ensuring you get the best value for your investment.
  • Market Volatility: FIAs protect your principal from market losses, providing peace of mind and stability.
  • Complexity: We simplify the process, providing clear explanations and guidance every step of the way.

Failing to work with us may result in missed opportunities for safe growth and unnecessary exposure to market risks. However, partnering with us ensures a secure, well-planned retirement that adapts to changing economic conditions and helps you achieve your financial goals.

Imagine the peace of mind and confidence you’ll feel knowing your retirement savings are protected and growing steadily. Contact us today for free advice or a quote.

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Questions From Our Readers

Can I buy an annuity at 30?

Yes you can buy an annuity at age 30.

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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