Prevent Your 401k or IRA From Wasting Your Money

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Fixed Index Annuities

Here’s the problem…

The money we keep, 401k, 403b, IRA is typically charged fees of 1% to 2% for administrative services and management expenses which will be deducted from our retirement savings every year even when our accounts lose money!

Now 1% or 2% might not seem like much but those deductions can be VERY costly. Because every1% we pay out in annual fees over 20 or 30 years will leave us with 20% to 30% less money at retirement. Which will mean 20% to 30% less income costing us hundreds or thousands of dollars every month for the rest of our lives!

What’s the solution?

A transfer or “rollover” of your retirement savings into an IRA with a contractual guarantee to earn an interest rate based ONLY on the growth of an equity market index, S & P 500, NASDAQ, Dow Jones, NET of any taxes, commissions, fees or expenses.

The solution is a contractual guarantee to grow AND protect your savings as well as the income you derive from your savings for as long as you live…without the risk of losing money and without any fees for administrative services or management expenses.

The solution is a fixed index annuity. According to the U.S. Securities and Exchange Commission more than 123 billion dollars have already been deposited into contractually guaranteed fixed index annuities.

Here’s how they work…

With a fixed index annuity, you don’t actually invest in an equity market index. A fixed indexed annuity only uses the index to determine the interest rate it credits to your savings. When the index increases or gains value or a period of time specified in the contract an interest rate as a percentage of those gains is credited to your savings.

When the index decreases or loses value, NO interest is credited to your savings and those losses are never deducted. Your earnings are preserved and your savings are protected within the contract for as long as you live.

However, there is a maximum limit on how much of the index gains can be credited in any one day. And a minimum number of years before those gains can be withdrawn.

You don’t get ALL of the index gains but you don’t get ANY of the index losses.

For example…

If the index decreases by 10% even if it loses 20, 30, or 40% of its value during ANY period of time not one dollar of your IRA money would ever be deducted from your fixed index annuity.

Because a fixed index annuity is a long-term financial contract guaranteed by a “legal reserve” insurance company subject to government regulations and required to maintain capital reserves equal to ALL of its contractual guarantees.

However, you COULD lose some of your IRA money in a fixed index annuity if you withdraw MORE than 10% of your savings in any one year (NOTE: subject to the provisions of the particular insurance company you invested with; some withdraws could be more and some could be less; check your contract for details; however most contracts customarily provide for up to 10% withdrawals).

And of course the IRS will charge a 10% tax penalty in addition to income taxes on ANY money you withdraw before age 60. You CAN withdraw up to 10% of your fixed index annuity each and every year AFTER age 60 without any interest or tax penalties (NOTE: check your annuity contract for details about maximum penalty-free withdrawals).

Ask yourself this…

Does it make sense to keep paying fees every year out of your 401k, 403b, or IRA savings for administrative services and management expenses? On top of the potential losses to your retirement money?

Or does it make better sense to keep your retirement savings in a fixed index annuity with a contractual guarantee to grow your savings and protect your income for as long as you live?

With interest earnings based only on the increase of a balanced and diversified equity market index? Without ANY risk or losing your money? And without charging ANY fees for administrative services or management expenses?

This content is for informational purposes only. It does not reference, represent or recommend any specific product or company. References to interest rates, tax rates, growth rates or earnings assumptions are hypothetical, and all tax or legal implications should be verified by a qualified professional.


Author: Frank J Zakrocky

Frank believes in helping people by guiding them with sound, practical direction. Things like cutting expenses, trying to help people save more and helping to implement low risk money making plans.

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