A recent study found that 67 percent of Americans indicated they would be willing to give up smaller pay increases in exchange for steady and reliable income in retirement. In the same study, 78 percent said the disappearance of pensions has made it harder to achieve the American dream.1
With pension offerings on the decline, you may want to consider a fixed income component to your financial strategy. In short, adding an annuity may be an opportunity to help ensure a portion of your retirement income will be guaranteed.
What is an annuity?
An annuity is a contract you purchase from an insurance company. For the premium you pay, you receive certain fixed and/or variable interest crediting options able to compound tax deferred until withdrawn. When you are ready to receive income distributions, this vehicle offers a variety of guaranteed payout options — some even for life.
Most annuities have provisions that allow you to withdraw a percentage of the value of the contract each year up to a certain limit. However, withdrawals will reduce the contract value and the value of any protected benefits. Excess withdrawals above the restricted limit typically incur “surrender charges” within the first five to 15 years of the contract. Because they are designed as a long-term retirement income vehicle, annuity withdrawals made before age 59 ½ are subject to a 10 percent penalty fee, and all withdrawals may be subject to income taxes.
1The National Institute on Retirement Security. “Retirement Security 2015: Roadmap for Policy Makers – Americans’ Views of the Retirement Crisis.” March 2015. http://www.nirsonline.org/storage/nirs/documents/2015 Opinion Research/final_opinion_research_2015.pdf
It is important to feel you have control over your future. At Yeisley Financial Group, we offer our experience and knowledge to design a specific plan of action that helps you work toward your financial independence.
To schedule a time to discuss your financial future and the possible role of insurance or investment products in your financial strategy, contact us at firstname.lastname@example.org or call us at 316.719.2900 today!
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We are a group of independent financial services firms dedicated to helping individuals create investment solutions and retirement strategies using a variety of financial planning tools customized to fit their needs and objectives. Yeisley Financial Group, Inc. provides insurance products and services. Yeisley Wealth Solutions, Inc. is a state registered investment advisor firm that provides investment advisory services. Yeisley Wealth Solutions may only transact business in those states in which it maintains a notice filing, or qualifies for an exemption or exclusion from registration requirements. Yeisley Tax Solutions, Inc. provides tax preparation services. Our companies are headquartered in Wichita, Kansas and all companies are advertised to the public collectively as Yeisley Financial Group.
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