Is a fixed annuity worth it for those early retirement years?

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As an advisor, you have many tools in your toolbox to help guide your clients through their retirement planning process while diversifying their portfolios. However, there may be one tool that is currently underutilized – the fixed annuity. Similar to a bond or CD, fixed annuities are considered safe money products, with added benefits that could make them an alternative choice. Fixed annuities can be especially useful to those who will be retiring in the near future and have a lot they want to see, do and accomplish in those first few years of retirement.

Knowing that people tend to spend more money in the early years of their retirement, especially on activities, hobbies and travel – it’s important for you to help them plan accordingly. Looking ahead and providing solutions that will allow your clients to hit their savings targets can be made easier with a safety-oriented product, like a fixed annuity. With fixed annuities you will be able to help your clients protect what they have already saved and continue to grow their money – giving them the flexibility and resources to do what they want to do. In order to achieve this, there are a few things you should consider.