We can’t control the market, but we can control the fees we pay. Many of us are unaware what fees we are being charged in or by our investments and how it is eroding our retirement nest-egg. According to the Investment Company Institute, the average annual fees (expense ratio & 12b-1) for equity mutual funds were 1.50% per year. These fees, which offer no guarantee, can erode a substantial amount of your retirement over time.
ONLY Fixed-Index Annuities (FIAs) allow your funds to grow tax deferred. This results in Triple-Compounding Interest. You earn interest, you earn interest on your interest, and you earn interest on the money that you would have normally paid in taxes.
Assuming a 25% tax bracket and a 5% annual gain, a $100,000 FIA would have 12% more after 10 years when compared to a non-tax deferred investment, such as a bank CD.
Indexing allows your retirement to participate and lock-in the upside market gains, but never in the downside market losses. When a market index (such as the S&P 500) increases, the FIA participates and locks in the gains, but when the market index declines, the FIA does not lose value.
With Indexing, your retirement is always safe and your principal and gains will never be lost due to market downturns.
Are your retirement investments actually costing you future income? Where do you want your retirement income to take you?
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