Most financial experts believe that many older Americans are too heavily invested in the stock market, and now there’s evidence to back them up. When giant Fidelity Investments analyzed its retirement accounts customers, it found that 37% of those born between 1946 and 1964 have more equity holdings than they should. Depending on age, people in this age bracket should have from 47% to 67% in equities, according to Fidelity.
Fixed indexed annuities have a lot of moving parts. To ensure you’re getting one that suits your needs best, you’ll need to spend some time looking at your options. An experienced annuity agent can help you reach the right decision. There are generally no penalty-free withdrawals during the first year. Most indexed annuities let you take out up to 10% withdrawals in year two and each year afterward. However, the interest portion of withdrawals from non-qualified annuities is taxable.
What else can you do to increase the odds you’ll get the best long-term return? Ranking indexed annuities by their current cap rates or participation rates helps but doesn’t provide a complete picture.