3 Reasons to Consider a Retirement “Safe Haven” During Market Chaos

Many people who watched the market during Monday’s sell off had the same concern: “how will this affect my money and retirement goals?” The days of pensions providing a sizable percentage of American workers with guaranteed retirement income are over. Today many Americans expect to heavily rely on their retirement savings for how they will support themselves and their families in their golden years.

With so many Americans’ quality of life in retirement directly tied to their financial reserves, many have begun to seek a “safe haven” in fixed income annuities.Here are three benefits a fixed income annuity can provide during a time of financial instability and market chaos.

Protect Your Nest-Egg From Market Fluctuations

Imagine you are within a few years of retirement, or retired and about to make a major purchase, then a major market decline occurs. Many people faced this scenario during Monday’s sell off and in past financial crisis (like in 2008). Fixed annuities are designed to protect against these risks. At its core a fixed income annuity is a contract in which an insurance company provides you with a stated rate of return on your money, regardless of future market conditions.

Create an Income Stream that You Can’t Outlive
One of the primary features in many fixed income annuities is to provide an income stream in retirement that you can’t outlive. For many people this means that starting on their retirement date they will start receiving a check every month until the day they pass away. No matter how long they live, and no matter what happens in financial world, the income stream that they depend upon can be protected.

Receive Tax Deferred Income

Many fixed income annuities are designed to provide tax-deferred income. This means that you are usually not responsible for paying taxes on the money in your fixed income annuity until you start receiving income from the annuity. For many people, this may reduce their tax burden over time.Like all financial products and services, a fixed income annuity is not suitable for every person or situation. It is important to work with licensed financial services professional to help you evaluate your objectives and options.


Written by : Malcolm J. Harris,  Managing Director of the National Care Financial Group, a financial services firm based in Washington, D.C. that serves clients nationwide. He has been featured by Oprah Winfrey and Black Enterprise, and speaks nationally on retirement planning and wealth building. For more info, check them out here:  http://www.NationalCareFinancial.com.

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