Exploring Fixed Annuities in Retirement: A Reliable Option for Stable Income 

Hello, I’m Ben Payton, CFP®, ChFC®, and at Absaroka Wealth Management, my focus is on helping clients navigate retirement income planning with confidence. Today, let’s explore the benefits of fixed annuities as a valuable tool for securing stable income during retirement. 

Understanding Fixed Annuities 

Fixed annuities are financial products offered by insurance companies that provide a guaranteed stream of income over a specified period or for life. Here’s why fixed annuities are worth considering: 

Why Consider Fixed Annuities for Retirement Income? 

1. Stable and Predictable Income: Fixed annuities offer a predictable income stream that is not subject to market fluctuations. This can provide confidence knowing exactly how much income you’ll receive each month to cover essential expenses in retirement. 
2. Guaranteed Interest Rates: Unlike other investments, fixed annuities offer a guaranteed interest rate for a set period, often ranging from 1 to 10 years or even longer. This ensures that your principal is protected and will grow at a steady rate. 
3. Tax-Deferred Growth: Earnings within a fixed annuity grow tax-deferred until withdrawals begin. This can be advantageous if you’re in a higher tax bracket during your working years and expect to be in a lower bracket in retirement. 
4. Flexibility in Payout Options: Depending on your needs, fixed annuities can provide income for a specific period (period certain) or for life (life annuity). Some annuities also offer options to provide income for a surviving spouse or beneficiary. 

Considerations When Using Fixed Annuities in Retirement 

1. Surrender Charges: Some fixed annuities may have surrender charges if you withdraw funds before the end of the surrender period, typically ranging from 5 to 10 years. It’s important to understand these charges and choose an annuity that aligns with your liquidity needs. 
2. Inflation: While fixed annuities provide stability, they may not keep pace with inflation over time. Consider combining fixed annuities with other investments or inflation-adjusted annuities to maintain purchasing power. 
3. Shop Around: Annuities can vary significantly in terms of fees, features, and payout rates. Compare offerings from different insurance companies to find the annuity that best meets your retirement income needs. 

How Can I Help? 

As a Certified Financial Planner™ (CFP®) and Chartered Financial Consultant® (ChFC®) at Absaroka Wealth Management, I specialize in retirement income planning. I can assist you in evaluating whether fixed annuities align with your retirement goals and help you integrate them into a comprehensive retirement income strategy. 

Take the Next Step Towards Assured Retirement Income 

Ready to explore how fixed annuities can provide stable income in your retirement years? Schedule a meeting with me, Ben Payton, at Absaroka Wealth Management today. I’ll provide personalized guidance and strategies tailored to your unique financial situation and retirement aspirations. 

Don’t hesitate—call me today to schedule a consultation at (307) 586-2702 or schedule a meeting below. Let’s work together to build a retirement income plan that brings you confidence and ensures financial security in your golden years. Start planning today for a brighter tomorrow with fixed annuities as a cornerstone of your retirement income strategy. 

*Fixed annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply.