Planning for retirement gets lots of positive press these days. Since the demise of the company sponsored pension, funding retirement has become a personal responsibility. Those who have a successful, enjoyable retirement usually started planning far ahead of their actual retirement date, by clarifying their goals and making smart saving decisions. To have the retirement you have dreamed about, you should focus time and effort into developing a savings plan. While traditional tax deferred savings methods, such as 401k’s and IRA’s, are a great way to save, don’t discount the power of the safe tax deferred compounding offered by deferred fixed annuities. By offering safe, stable growth in a tax-deferred environment, fixed annuities should have a place in your retirement plan.

When planning for retirement, you should be aware that your savings should achieve three goals. First, your savings should cover your everyday living expenses. You must have enough money to pay the bills, buy food, pay for healthcare and so on. Second, you should ensure that you have enough funds to last the rest of your lifetime. Running out of savings during retirement is a common fear among retirees. Last, you should take measures to ensure your savings grow, to keep pace with inflation. Of course, this growth should be sheltered from loss as much as possible. Many retirees believe that this means that the bulk of their savings should be in an FDIC-insured savings account or bank CD. Some retirees don’t realize that fixed annuities, with guaranteed interest rates and the safety of being backed by an insurance company, may offer a better deal than a bank ever could.

Fixed annuities are remarkably similar to bank CDs. Your money is deposited for a specific time period, earning a favorable interest rate. At the end of the fixed annuity term, you once again have access to the money – your original principal and any interest earnings. Fixed annuities generally have interest guarantee periods ranging from three to ten years and they typically offer better interest rates than most bank CDs. Also interest earnings in fixed annuities are tax deferred until withdrawal.

Do fixed annuities sound like a great addition to your retirement plan? If you have some extra savings that you would like to put to work for at least three years, and the idea of tax-deferred interest earnings appeals to you, then you may be ready to take the fixed annuity plunge. Call our Annuity Specialists today at 1-800-994-3023 to learn the best rates and terms available for fixed annuities.