LOS ANGELES, CA / ACCESSWIRE / December 14, 2018 / Market volatility and common misconceptions about saving options have created an atmosphere of apprehension for many future retirees. Mark Goldfinger, of Stonehenge Retirement Planners LLC, discusses the reasons why fixed index annuities (FIA) are an ideal solution for financial advisors who seek to offer their clients a stable, no-risk method for protecting and growing their retirement savings - with the opportunity for incremental gains from interest over time.
The main concern for anyone investing in their retirement is the overall security of their money. Although many retirement savings options do offer high interest-earning possibilities, the majority carry a certain amount of risk alongside them as well. This is an aspect that can deter many future retirees from these methods - or at least create stress before and during the savings process. Diversification is often encouraged to mitigate any potential losses down the road, but this is not always done correctly. "Some attempt to diversify by having a mix of stocks, bonds, and mutual funds," says Forbes contributor Mike Riedmiller. "While this is better than owning shares of stock from only a few companies, it doesn't provide much diversification, given you're still in the narrow classes of equities and bonds."
Whether a person is looking to diversify their retirement savings plans, or cultivate a stable income amount after retiring, a fixed index annuity is an alluring option to offer them for several reasons. First of all, there is no negative risk to their funds whatsoever, regardless of any market volatility. With an FIA, the client's money is never invested directly in the stock market. The interest rate is instead linked to the performance of a stock index, such as the S&P 500. This allows a client to participate in market gains yet avoid any losses if the market declines. The result is a guaranteed minimum return that is easier to plan for and budget around when payouts begin. Although most fixed indexed annuities have caps put in place that limit an associated index gain carryover to a certain percentage, the client benefits from the prospect of knowing they can only gain interest, while avoiding any loss to their funds entirely.
Another selling point for fixed index annuities centers around their versatility and unique tax advantages. Contributions can be made to them at any time, and from any source - with no set minimum or limit. This enables consumers to use an FIA as a safe, no-risk haven for large amounts of previous savings, or funds obtained from an IRA or 401K. Furthermore, in the event of an emergency or unforeseen misfortune, contributors are often allowed to withdraw up to 10% of their annuity each year without paying a penalty. Mark Goldfinger also encourages retirement planners to advise high earners of the tax-deferred growth opportunity provided by these types of annuities. The client pays no taxes on any gains until there is a withdrawal, which has ordinary income tax rates.
A native of New York City, Mark Goldfinger earned his BBA degrees from Bernard Baruch College prior to receiving his MBA from St John's University. He is a renowned retirement planning expert and sole owner of Stonehenge Retirement Planners LLC, a Registered Investment Advisor firm. With offices in Arizona, Nevada, and California, Mark Goldfinger offers comprehensive financial services for an expansive list of satisfied clients. He is FINRA Series 7, 31 & 66 licensed, and during his career acquired the titles of Certified Financial Manager, Chartered Retired Planning Counselor, and Certified Special Needs Advisor.
Mark Goldfinger - Owner of Stonehenge Retirement Planners LLC: http://markgoldfingernews.com
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SOURCE: Mark Goldfinger
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