Why FIAs Belong in Retirement Planning Some CPAs argue against using annuities in qualified plans. Personally, I believe FIAs add tremendous value inside retirement accounts because of their safety, tax deferral, and income guarantees. At this stage in life, I want my money guaranteed—and so do my clients. Bottom Line: Fixed Indexed Annuities combine the safety of principal protection with the potential of market-linked growth. They are not Wall Street gambles; they are secure financial strategies designed to protect, grow, and ultimately provide income for life. The Annual Reset Advantage Another great benefit of FIAs is the Annual Reset Feature. Each year, on the client’s anniversary date, all the gains from the prior year are locked in and become part of the account value. Once those gains are credited, they can never be lost due to market corrections. This means: • Principal, bonuses, and accrued earnings are safe and secure. • The account value will never decrease unless the client takes a withdrawal. • Most FIAs allow penalty-free withdrawals of 5% to 10% per year, giving clients liquidity without penalty. The only way a client’s account will decline is if they break their contracts such as surrendering the annuity early or withdrawing more than the allowed penalty-free amount. Otherwise, the money is protected for life. With this powerful reset feature, clients can truly say: “I can never lose money due to market losses, and I keep every gain I earn along the way.” How Safe Is Your Financial Ship? On April 14, 1912, the Titanic disaster claimed the lives of 1,522 passengers. A little over 2,200 people boarded the “unsinkable ship,” believing they were perfectly safe. Yet pride and arrogance blinded management to reality. To preserve the ship’s image, lifeboats were left on the dock—
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