Annuities

Adding an annuity may be an opportunity to help ensure a portion of your retirement income will be guaranteed.*
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Annuities

In the past, retirees could typically count on three sources of retirement income that divided roughly into thirds. The three sources of income have traditionally been government-funded Social Security, employer-sponsored components and individual savings. With this traditional scenario, both the government and employer-sponsored components of the strategy were considered predictable — reliable income sources that may also be adjusted for inflation like Social Security benefits. Only one-third of the plan, individual savings, was the responsibility of the individual. Today, however, due to employer-sponsored plans evolving from guaranteed pension payouts to more defined benefit contribution plans, which generally result in a payout in retirement based upon level of individual participation, the majority of the burden for retirement income seems to have shifted to the individual. For this reason, you may want to consider a guaranteed* fixed-income component to your retirement strategy. In short, adding a fixed or fixed index annuity may be an opportunity to help ensure a portion of your retirement income will be guaranteed.*

An annuity is a contract you purchase from an insurance company. For the premium you pay, you receive certain fixed and/or variable interest crediting options able to compound, tax-deferred, until withdrawn. When you are ready to receive income distributions, this vehicle offers a variety of guaranteed* payout options. Most annuities have provisions that allow you to withdraw a percentage of the value of the contract each year up to a certain limit, without surrender penalties. However, withdrawals can reduce the value of the death benefit, and excess withdrawals above the restricted limit typically incur “surrender charges” within the first five to 15 years of the contract, depending on the contract selected. Withdrawals will reduce the contract value and the value of any protection benefits, and because they are designed as a long-term retirement income vehicle, annuity withdrawals made before age 59 ½ are subject to a 10 percent penalty fee, and all withdrawals may be subject to income taxes.

* Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and surrender charge periods, which vary by carrier. Annuities are NOT FDIC insured.

Your investment advisor is not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. You should consult a legal or tax professional on any such matters.

Strategies for Financial Independence

It is important to feel you have control over your future. At Nichols Financial, we offer our experience and knowledge to help you design your own strategy for financial independence.

Contact us today to schedule a no-obligation meeting! Call us at 410-925-7720 or connect with us online at info@nicholsfinancialinc.com.

We are an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives.

Have Questions for Our Team?

It can be difficult to make financial decisions without access to information. If you have questions or concerns about your current retirement strategy, feel free to contact us using the form below.

At Nichols Financial, we offer you the following services:

(Click the images below to learn more about each service)

Annuities

Wealth Accumulation

Asset Protection

Life Insurance

Retirement Income Strategies

Tax Minimization Strategies

IRA & 401(k) Rollovers

Inherited IRAs

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We can also refer you to professionals who provide the following services:

» Trusts » Probate » Charitable Giving » Estate Planning » Tax Planning » IRA Legacy Planning

Get access to our helpful retirement kit which includes three guides that address topics you should consider when planning your retirement.

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Jason Nichols is an Investment Advisory representative with investment advisory services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor. Greg S. Nichols is insurance licensed only and does not offer investment advice.

Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Global Financial Private Capital.

We are an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives.

Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.

*Guarantees provided by insurance products are backed by the claims-paying ability of the issuing carrier.

The retirement kit is provided for informational purposes only. It is not intended to provide tax or legal advice. By requesting this report you may be provided with information regarding the purchase of insurance and investment products in the future.