Employing Advanced Insurance Strategies to Create Guaranteed Income

Tax-Free Retirement Specialists educates their clients to learn strategies which provides guaranteed income utilizing Fixed Indexed Annuities (FIAs).  The annuities are guaranteed not to lose principal in the stock market.  This occurs because one does not have their premium invested in equities.  Their premiums are invested in bonds.  The bonds create interest.  One has the choice to take the interest from the bonds as a credit or invest the interest from the bonds into an index.  This is done by the insurance company and it is called buying calls in an index.  When the index increases, it will credit ones account up to the cap.

There are numerous indexes to choose from.  The indexes have caps which limit how much you can earn and a floor of zero.  Some (FIAs) have multipliers, this means whatever yield that create, the yield will be multiplied by the multiplier.  These multipliers go to 175%.

(FIAs) that have an accumulation period and then an income period for life.  This income period can start next month, or any year one wishes.  The longer the deferral period, the larger the income. Income can be joint for both spouses for life. 

There are (FIAs) that have level income and those that have increasing income.  One can multiply their premium many times if they select increasing and have many years to live.

There are (FIAs) that accumulate.  They are designed to increase over the years.  After ten years or any time after that, one can withdraw the total amount and walk.  This seldom happens because one will want the gains to continue.

If one believes the stock market will tank in the future, there is a (FIA) which offers a 10% bonus on the income account upon starting the annuity.  Also, each year it is in deferral, there is an addition 10% credit in the income account. This happens for 10 years, thus $100,000 can growth to $210,000 in ten years. Then this amount is used in the formula for producing income. 

The annuities can be IRAs or non-qualified money (after tax money).  Some of these annuities are user friendly to converting IRAs and 401(k)s to Roth IRAs.  The Roth IRAs will create in 5 years tax free income.  Hence this is one strategy to minimizing taxes.

(FIAs) have accumulation bonuses and income bonuses up to 30%.  One is allowed to take penalty free 10% withdrawals annually.

The conversion can be implemented by spreading the taxes payments over the five years.  This requires one to have after tax money in a savings account or disposable income.  Another strategy is to take 10% distributions of money from the annuity to pay the taxes for x years.  This works great, however there are only a few annuities which allow this strategy.

It is critical to develop a retirement plan.  This plan provides for guaranteed income to meet one’s essential needs, i.e., food, housing, medical and transportation.  The fixed indexed annuities will be utilized to provide guaranteed income.  There are options that will allow the FIA to increase its income annually when the stock market increases to keep up with inflation.

If this plan contains all Roth IRAs, it has a high probability of being under the IRS’s Provincial Income thresholds, therefore one does not have to pay tax on one’s Social Security benefits. 

By creating a retirement plan, it answers the questions of which strategy should be utilized, how much dollars to be repositioned and the precise timing.


The last step would be to convert any excess assets to Roth IRAs (FIAs) which are the accumulation type.  The key in the retirement plan is to transfer all the excess income in the Taxed Bucket and Tax Deferred Bucket into the Tax-Free Bucket.

To view the video "Basics on Fixed Indexed Annuities," go to the video section "What are Fixed Indexed Annuities."

To view the video "Paycheck For Life," go to the video section "Paycheck For Life."

Go to the Additional Resources section and click on it's FIND OUT MORE button to find out more on the discussion of the following:

Risk on all types of investments; And a chart depicting the FIA and stock market performed comparable from 2006-2018.

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The Buyer's Guide for Fixed Deferred Annuities

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