Using annuities can add so much to retirement. If you are close to retirement or in retirement, a serious look at annuities can change your life. Your income in retirement should be smooth and steady but if you underlying investments that are providing your income are not smooth and steady then watch out! You may in for a bumpy ride that you never wanted for needed to be on in the first place.

Using market investments like stocks and mutual funds to fund your retirement income is not always the best way. In the past retirement planning relied on the market going up to be successful. The market and the economy are changing and requiring planning efforts to change as well. Withdrawing 4-6% every year from marketing investments that are down in value won’t work for long. It is a recipe for disaster! Annuities offer a better solution.

Market Volatility

Market volatility can cause major stress for anyone with money tied up in funds or mutual funds. It causes even more stress to people that are already retired. Losing money in retirement is not only stressful but can cause major problems in your IRA income plan as well. If you have money in the market you have experienced this scenario a few times in the last ten years. But the is a better way and it is a stress free way!

Imagine if your investments never went down and still provided enough income to meet all of your expenses. How would your life change if you never had to worry about your IRA income again? How often did you think about your accounts that were down over the past few years? How much worry did it cause?

Annuities Are The Answer

Fixed indexed annuities can provide exactly the relief that you are looking for in conjunction with an annuity laddering plan. Annuity laddering is simply using annuities for a short term, intermediate term, and a long term income need. The fixed indexed annuity comes in on the second step of the annuity laddering plan.

Step one is investing in an immediate annuity for 5 years of income. You will invest exactly the amount needed to create your target income for 5 years.

Step two is using an indexed annuity for 5 years of growth and 5 -10 years of income.

Step three is using an indexed annuity for 10 years of growth and then income for life.

The indexed annuity is the key component. Step one guarantees your first 5 years of income will never go down. Step two introduces growth and your intermediate income. An indexed annuity is also guaranteed to never go down. Step three applies to your long term income and growth.

Using this plan your income and principal is guaranteed to never go down. There is no risk. Having no risk takes out all of your worry. Guaranteed income erases all financial tension and stress. With no stress, peace follows.

Author's Bio: 

Keith Dennis works exclusively with small business owners to help them create tax-free income streams for retirement. Business owners are often stuck in the tax-deferred investment trap. They get a small break now and then end up paying much higher taxes later because they lose their business deductions. Then on top of that, their income is usually 100% taxable!

With tax-free investing you can literally have twice the income in retirement saving the same amount of money, retire sooner, or even save about half as much versus tax-deferred investments.

Get it touch with Keith today to learn how it works through the Small Business Retirement Group's Fan Page.