Indexed Annuities Ideal for 401k Rollovers

Are you looking forward to retirement?  Your vision of a perfect retirement may be to move to the beach or mountains, travel, participate in community service, visit with children and grandchildren, go off on a grand adventure or just relax in a hammock with a good book. 

Are you taking steps now to make your retirement dreams happen?  This is an excellent time to take a good look at any 401k or other qualified plan rollover that you have put aside for retirement.  You may find that your account is doing better now than it has in the past 10 or more years, due to recent increases in the stock market.  You can lock in those increases and protect your savings from future market dips by rolling them into an Indexed Annuity.

Innovations in recent years have resulted in Indexed Annuity policies that are flexible and offer growth potential and security.  You purchase an annuity in an amount of your choosing, generally subject to a minimum of $10,000, which will pay you interest that accumulates tax deferred for a specified period of time, often between 5 and 12 years.  Not surprisingly, the longer the commitment you make, the better the return of interest.  At the end of the surrender charge period you have options for your accumulated savings, unlike in the past when you were required to “annuitize” your savings, turning over control to the insurance company.   

Features of the annuities offered by different insurance companies vary, but some of the most attractive and frequently offered benefits are:

• Growth based on the S&P or other market index credited annually or bi-annually.
• Locked-in accumulated fund values so that future market downturns don’t reduce your savings.
• Income grows tax deferred.
• Annual withdrawals of up to 10% of your account value may be available with no early withdrawal penalty.
• Inflation protection.
• Waivers of surrender charges for access to your funds in case of long-term care needs or terminal illness. 

No one Indexed Annuity is right for every person.  Please give me a call if you would like more information about Indexed Annuity products and features that might help you reach your retirement dreams.

Pat Murphy is an experienced insurance professional who has been with Lawyers Insurance since 2005. You can read more about her background on her LinkedIn profile. Contact Pat at 800.662.8843 or pmurphy@lawyersmutualnc.com.