Best Fixed-Rate Annuities for a Balanced Portfolio

Consider Annuities for a Balanced Portfolio: Is Your Stock Investment Too High?

Many baby boomers, those born between 1946 and 1964, have more of their money in stocks than experts recommend. This can be risky, especially as you get older, because you have less time to recover from stock market ups and downs.

To balance your investments and reduce the risk, it’s a good idea to look at other options like annuities, bonds, and certificates of deposit (CDs). These are financial tools that provide a steady income, which can help you make your investments safer.

Treasury Bonds and Notes: These are backed by the U.S. government and are very safe. They promise to give you back your money if you hold them until they mature, but you might lose money if you sell them early. The interest you get from these bonds is taxed by the federal government but not by your state.

Corporate Bonds: These usually pay more than Treasury bonds but come with more risk. Municipal bonds are tax-free at the federal level, making them a good choice for people in higher tax brackets despite offering lower interest rates.

Fixed-Rate Annuities: These are like certificates of deposit but with some key differences. They let you delay paying taxes on the money you make. This can help your money grow faster because you’re not losing part of it to taxes. Fixed-rate annuities often pay more than similar-term CDs.

Fixed-rate annuities also allow you to withdraw some of your money without penalties, giving you more flexibility while enjoying the tax benefits. They don’t have federal deposit insurance like bank CDs, but state annuity guarantee associations can protect your investment up to certain limits. Insurers who issue annuities are highly regulated and are known for being financially stable.

If you’re interested in adding annuities to your portfolio or want to learn more about financial planning, feel free to contact Mintco Financial at 813.964.7100. Our team is dedicated to helping you secure your financial future.

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