Building a Paycheck for Life with Strategic Financial Planning.​
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At New Beginning Financial Group, LLC, we know that the biggest fear in retirement is outliving your money. While savings are important, an Annuity is the only financial vehicle designed specifically to ensure you never run out of income, no matter how long you live.
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Why Are Annuities Needed?​
In the past, many workers relied on company pensions. Today, the responsibility of creating a "pension" has shifted to the individual. Annuities fill this gap by providing:
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Longevity Protection: Modern medicine means we are living longer. An annuity protects you from the risk of outliving your assets.
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Market Volatility Shield: Certain annuities protect your principal from stock market crashes, ensuring your retirement stays on track even when the economy is volatile.
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Tax-Deferred Growth: Your money grows without being taxed until you start taking withdrawals, allowing your interest to compound faster.
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What Annuities Offer as a Retirement Vehicle​
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Think of an annuity as the opposite of life insurance. While life insurance protects against dying too soon, an annuity protects against living too long.
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A Guaranteed Stream of Income: You can convert a lump sum of cash into a guaranteed monthly payment for life (or a set period).
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Death Benefits for Heirs: Most modern annuities allow you to pass the remaining value of your account to your beneficiaries if you pass away prematurely.
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Customizable Riders: You can add features to your annuity for long-term care needs, inflation protection, or enhanced death benefits.
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Educational Insight: Understanding the Three Main Types
Not all annuities are created equal. We help you navigate the three primary categories:
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Fixed Annuities: Modern medicine means we are living longer. An annuity protects you from the risk of outliving your assets.
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How it Works: Like a CD, it pays a guaranteed fixed interest rate for a set number of years.​
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Best For... Conservative investors seeking safety and a predictable return.
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Fixed Indexed Annuities: Certain annuities protect your principal from stock market crashes, ensuring your retirement stays on track even when the economy is volatile.
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How it Works: Your interest is linked to a market index (like the S&P 500), but your principal is protected from losses.
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Best For... Growth-seekers who want market gains without the risk of losing money.
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Variable Annuities: Your money grows without being taxed until you start taking withdrawals, allowing your interest to compound faster.
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How it Works: Your money is invested directly in the market. You can see higher gains, but your principal is at risk.
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Best For... Aggressive investors with a long time horizon.
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Frequently Asked Questions:
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Is my money "locked up"?
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Most annuities have a "surrender period," but they also typically allow you to withdraw up to 10% of your account value annually without penalty for emergencies.
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How are annuities taxed?
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If you buy an annuity with "after-tax" money, only the interest portion of your payments is taxed when you withdraw it. If you use IRA/401(k) funds, the payments are generally taxed as ordinary income.
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Is an annuity right for me?
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Annuities are best for those approaching retirement (ages 50–70) who want to ensure their essential living expenses (housing, food, healthcare) are covered by a guaranteed source of income.
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