Retirement Planning
Retirement Planning is not just for the wealthy!
Planning is the key for retirement success. Whether you’re looking for continual income streams, managed money, or what is best when rolling over a 401k, Cornerstone Advisors are here to help guide you through the process and help you decide what’s most appropriate for your individual needs.
It’s important for your financial advisor to have a complete view of your financial picture so that we can develop a holistic approach to ensure you have a solid financial foundation for the retirement that you want to have. If necessary, we can refer you to tax professionals or attorneys in our area to advise you on specific aspects of your financial plan.
An annuity can provide a guaranteed income stream during retirement. Simply put, an annuity is a contract between you and a company, usually an insurance company. You deposit money and they work to maximize your income while providing protection against “outliving” your money.
Tax Deferral
A major advantage for many annuities is tax-deferred growth. Your money can grow free of federal taxes until you receive it as income. This makes annuities particularly popular as investment income instruments. There are several types of annuities available. Your Cornerstone Adviser can help you select the one that best meets your retirement goals.
Fixed Deferred Annuities
This type of annuity pays a fixed rate of interest. You can get immediate monthly income, a guaranteed rate of return, even a guaranteed return of principal unless you surrender your policy before your maturity date. Your Cornerstone Adviser can help you decide if the flexibility and stability of this retirement income favorite is right for you and your retirement.
Equity-Indexed Annuities
There’s no risk of losing your investment. If the market rises, you gain. If it goes down, your principal is guaranteed and the gains you have earned are locked in. There’s even a guaranteed return of interest on your principal. Some penalties may apply if you withdraw money earlier than stipulated and all distributions are subject to ordinary income tax.