Explanation of a 1031 exchange deadlines and processes as well as advantages of using a 1031 exchange. Give a call to see if a 1031 Exchange is right for you.
- Principal protection: One of the primary benefits of FIAs is that they offer protection of your principal, which means your money is safe from market volatility. This is because FIAs are insurance products that offer a guaranteed minimum interest rate and a minimum rate of return. This makes FIAs a great option for those who want to protect their retirement savings from market downturns.
- Growth potential: While FIAs offer principal protection, they also provide the opportunity for growth through index-linked interest credits. The interest credits are based on the performance of an underlying index, such as the S&P 500. If the index performs well, you can earn higher interest credits, but if it performs poorly, you are still guaranteed a minimum rate of return.
- Tax-deferred growth: Another advantage of FIAs is that they offer tax-deferred growth. This means that you do not pay taxes on the interest earned until you withdraw the money. This can help your retirement savings grow faster and can also potentially reduce your tax bill in retirement.
- Lifetime income: FIAs can also provide a guaranteed stream of income for life through a rider called an income rider. This rider can provide a guaranteed minimum income regardless of market performance. This can be a valuable feature for those who want to ensure they have a steady stream of income in retirement.
- No annual contribution limit: Unlike traditional retirement savings accounts like IRAs and 401(k)s, FIAs do not have annual contribution limits. This means you can potentially save more for retirement with an FIA.
Overall, FIAs can be a great option for those who want to balance growth potential with downside protection in their retirement savings strategy. As with any financial product, it’s important to do your research and understand the fees, features, and limitations before making a decision.