Is It Time to Refresh Your Annuity? Here's Why You Might Consider It Eagle Wealth Management Group

Annuities have long been a cornerstone for those seeking a steady income stream in retirement. However, the financial landscape is ever-evolving, and what worked a few years ago might not be the best fit today. With rising interest rates, inflation concerns, and innovative annuity products entering the market, now might be a great time to reassess your annuity strategy.

  1. Capitalizing on Higher Interest Rates

Since 2022, the Federal Reserve has steadily increased interest rates, only slowing down within the past few months. This surge has a direct impact on annuity income rates. If you purchased your annuity before this period, you might be missing out on higher payouts available today. Exploring newer annuity options could potentially enhance your retirement income, but it will likely depend on your unique situation and options.

  1. Combating Inflation’s Erosion

Inflation doesn’t just affect the price of groceries. It can erode the purchasing power of your fixed annuity payments. With the cost of living on the rise, it’s essential to ensure your income keeps pace. Some annuity products can come with features designed to address inflation, even offering payout adjustments that track inflation, helping to maintain your financial health over time.

  1. Exploring Enhanced Annuity Features

The annuity market isn’t static. Recent innovations offer more flexibility, better investment options, and potentially lower fees. For instance, some contracts may provide enhanced death and living benefits, while others might offer market participation rates. No matter which of the many annuity options you choose or have access to, there are ways in which your unique goals and risks could be addressed. Reviewing your current annuity could reveal opportunities to upgrade to a product that better suits your needs.

Navigating the Complexities with Professional Guidance

The array of annuity products and features can be overwhelming. Determining whether to stick with your current annuity or consider a new one isn’t a decision to take lightly. This is where a financial professional becomes invaluable. They can assess your unique financial situation, clarify the benefits and drawbacks of various options, and guide you toward a strategy that aligns with your retirement goals. With their expertise, you can make informed decisions in an ever-changing financial landscape.

 

Source:

https://www.kiplinger.com/retirement/reasons-it-may-be-time-for-an-annuity-refresh

This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives. An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Consult a tax advisor for specific information. The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed.

Financial Planning and Advisory Services offered through Eagle Wealth Management Group Inc, a Registered Investment Advisor.  Brokerage services offered through Concorde Investment Services, LLC, Member FINRA/SIPC.  Eagle Wealth Management Group Inc. and Concorde Investment Services, LLC are not affiliated entities under common ownership.

SWG 4279858-0225

ia-sc-r-q-450-5-2025

 

This communication is for informational purposes only and does not purport to be a complete statement of all material facts related to any company, industry, or security mentioned. The information provided, while not guaranteed as to accuracy or completeness, has been obtained from sources believed to be reliable. The opinions expressed reflect our judgment now and are subject to change without notice and may or may not be updated. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. This notice shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which said offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such state.

Readers who are not market professionals or institutional clients of Eagle Wealth should seek the advice of their financial advisor before making any investment decisions based on this communication. Additional information on any securities mentioned is available on request. Financial Planning and Advisory Services offered through Eagle Wealth Management Group Inc, a Registered Investment Advisor. Brokerage services offered through Concorde Investment Services, LLC, Member FINRA/SIPC. Eagle Wealth Management Group, Inc. and Concorde Investment Services, LLC are not affiliated entities under common ownership.