TIP:

• Calculate how much you can expect to receive from your 401(k), IRAs, Social Security, and/or pension payments.
• Consider your fixed monthly costs (e.g., housing, food, transportation, etc), discretionary costs (activities, hobbies, travel), as well as projected costs (medical expenses, inflation, taxes, etc).
• If you do not think your current guaranteed income sources can cover your future costs, you will want to consider other sources of guaranteed income, like a fixed indexed annuity.

For more help estimating your retirement income and expenses, click here for relevant cost calculators.

TIP:

• Fixed indexed annuity payments can be received as a lump sum or as smaller payments over time.

Looking for money in the near-term:
A lump sum may make more sense for you.

Looking for a steady stream of income down the road:
Smaller payments over time may be a better option.

TIP:

• If your current financial plan is comprised largely of riskier investments like stocks, it may be time to bring more balance to your portfolio with a safer product designed for the long-term, like a fixed indexed annuity.

To better assess your risk tolerance, click here to use our Risk Tolerance Calculator.

TIP:

Be sure to discuss the following important questions with an insurance agent before you make any purchases:

• How is the interest calculated and applied?
• What are the terms and conditions for receiving payments?
• Are there extra charges for withdrawals if something major comes up in your life?
• What, if any, penalties must you pay for ending your contract early?

TIP:

• To confirm that the company issuing the fixed indexed annuity is licensed in your state, check out your state’s Department of Insurance.
• There are several ratings services that conduct financial analyses and grade insurance companies. These include A.M. Best, Fitch, and Standard & Poor’s, among others.

For more information on the safety of insurance companies, click here.