MONARCH MONTHLY
June 2022 Edition
ALL ABOUT ANNUITIES
Today’s headlines to help plan for tomorrow.
Sue’s News
June is National Annuity Awareness Month, so let’s talk annuities!
I think annuities are amazing, in the right circumstances. Looking for guaranteed income for the rest of your life? Looking for a safe investment that would pay you over 10% over the next 10 years? Looking for a short-term, guaranteed return of 3-4%?
My annuities can do all of that for you, and more.
So, what IS an annuity, and how could it be used in your retirement planning? Why put your money into an annuity, instead of into the stock market? The answers are below, as well as a description of a few better-known (and more used) annuities are below.
I’ve also let you know what my favorites are paying right now. The benefit of being independent is that I can look at a whole bunch of insurers, and find the products that are best for you!
Knowing your options, and having a solid long-term retirement strategy that may include annuities, is key to a successful financial plan.
“As in all successful ventures, the foundation of a good retirement is planning” – Unknown
Be safe, and be well!
ANNUITY V STOCK MARKET
When should you invest in an annuity instead of in the market?
That’s a loaded question, because it’s like comparing apples and oranges! Take a look here to see when an annuity may work for you, and when it’s better to be in the stock market.
FIXED ANNUITYS / MYGAS
A MYGA (Multi-Year Guaranteed Annuity) promises, on day 1, an interest rate for a certain number of years. You deposit your money, and in a few years, your balance has grown by the promised returns. Easy peasy, right?
Current 3-year MYGAs are offering over 3.5%, and 5-year MYGAs are at 4%. If you’re looking for guarantees, and you don’t need your funds over the next few years, look no further.
FIXED INDEXED ANNUITIES
A fixed indexed annuity ties their returns to a particular market index, crediting either annually or every 2 years. Maybe it’s the S&P500, maybe it’s a custom index – if the index goes up, your balance goes up. If the index goes down, you’re credited 0% – your principal is guaranteed.
There’s a 10-year FIA that’s caught my eye with some amazing accumulation history. In its best 10 years, it’s returned over 14%. But what I love is that in its worst 10 years, the annuity still averaged over 10% per year.
If you have long-term retirement funds and are looking for safety + returns, this is a great option.
SPIAS
Worried that Social Security won’t be enough to cover your monthly expenses? A SPIA, or Single Premium Immediate Annuity, takes a lump sum of money and converts it to lifetime payments, supplementing Social Security and giving you guaranteed income through retirement.
The best SPIA I’ve seen will provide a 65-year-old with almost $5,800 per month for a $1M lump sum. That’s almost 6% per year, guaranteed for their lifetime!
If you’re worried about monthly expenses in retirement, or outliving your savings, this is a great option!
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🏃♀️ Run/Walk For a Reason 🏃♀️
Craft 🍺, Community 🤝, Cause 🤗
THANK YOU!!!
Chris Owens of RE/MAX Preferred Group and I hosted our first 2022 Run/Walk for a Reason event earlier this month to benefit the Loveland Hope Squad and the Ben Morrison Memorial Fund.
Thanks to everyone that attended!! We raised over $700 for these amazing organizations!!
We’re going to continue to get up, get out, get together, and get moving for a great cause in December, where we will once again be providing our support to the Loveland LIFE Food Pantry and their Holiday Giving Shop!
Who knows, we may also decide to do one in September! If we do, we’ll announce it on Facebook – click the link below to Like/Follow us, so you can stay up to date on future events.
See you on the path!
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