Is It Time to Refresh Your Annuity? Here's Why You Might Consider It Suncrest Advisors

Annuities have long been a cornerstone for those seeking a steady income stream in retirement. However, the financial landscape is ever-evolving, and what worked a few years ago might not be the best fit today. With rising interest rates, inflation concerns, and innovative annuity products entering the market, now might be a great time to reassess your annuity strategy.

  1. Capitalizing on Higher Interest Rates

Since 2022, the Federal Reserve has steadily increased interest rates, only slowing down within the past few months. This surge has a direct impact on annuity income rates. If you purchased your annuity before this period, you might be missing out on higher payouts available today. Exploring newer annuity options could potentially enhance your retirement income, but it will likely depend on your unique situation and options.

  1. Combating Inflation’s Erosion

Inflation doesn’t just affect the price of groceries. It can erode the purchasing power of your fixed annuity payments. With the cost of living on the rise, it’s essential to ensure your income keeps pace. Some annuity products can come with features designed to address inflation, even offering payout adjustments that track inflation, helping to maintain your financial health over time.

  1. Exploring Enhanced Annuity Features

The annuity market isn’t static. Recent innovations offer more flexibility, better investment options, and potentially lower fees. For instance, some contracts may provide enhanced death and living benefits, while others might offer market participation rates. No matter which of the many annuity options you choose or have access to, there are ways in which your unique goals and risks could be addressed. Reviewing your current annuity could reveal opportunities to upgrade to a product that better suits your needs.

Navigating the Complexities with Professional Guidance

The array of annuity products and features can be overwhelming. Determining whether to stick with your current annuity or consider a new one isn’t a decision to take lightly. This is where a financial professional becomes invaluable. They can assess your unique financial situation, clarify the benefits and drawbacks of various options, and guide you toward a strategy that aligns with your retirement goals. With their expertise, you can make informed decisions in an ever-changing financial landscape.

 

Source:
This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives. An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Consult a tax advisor for specific information. The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed.SWG 4279858-0225

 

Investment Advisory Services offered through Portside Wealth Group, LLC. Portside Wealth Group, LLC is an SEC Registered Advisor. Portside Wealth Group LLC, and its representatives do not provide tax or legal advice. Each taxpayer should seek independent advice from a tax professional based on his/her own individual circumstances. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission, nor does it indicate that the Advisor referenced in this disclosure has attained a particular level of skill or ability. Securities offered through The Leaders Group, Inc., Member FINRA/SIPC, 26 W Dry Creek Circle, Suite 800, Littleton, CO 80120. (303) 797-9080.