Fixed annuities vs. bonds: which are better for retirement?

G O L D S T O N E F I N A N C I A L G R O U P

F I X E D A N N U I T I E S V S . B O N D S

6 4 % o f A m e r i c a n s s a y t h e y a r e m o d e r a t e l y o r v e r y w o r r i e d a b o u t h a v i n g e n o u g h m o n e y i n r e t i r e m e n t . I n f a c t , t h e y ’ r e m o r e w o r r i e d a b o u t r e t i r e m e n t t h a n y e a r l y m e d i c a l b i l l s .

T w o p r o d u c t s y o u m a y d e c i d e b e t w e e n a r e f i x e d a n n u i t i e s a n d b o n d s . L e t ’ s t a k e a l o o k a t w h i c h i s b e t t e r .

Y O U ' R E N O T

A L O N E

U s u a l l y p u r c h a s e d f r o m l i f e i n s u r a n c e c o m p a n i e s , f i x e d

a n n u i t i e s p r o v i d e o w n e r s w i t h l i f e t i m e i n c o m e .

C o m p a n i e s p r o v i d e a f i x e d i n t e r e s t r a t e i n e x c h a n g e f o r

a l u m p s u m o f c a p i t a l .

F I X E D A N N U I T I E S

B o n d s , w h i c h a r e p u r c h a s e d f r o m m u n i c i p a l i t i e s ,

g o v e r n m e n t s , o r c o r p o r a t i o n s , a r e d e b t

s e c u r i t i e s i n w h i c h a f i x e d r a t e o f i n t e r e s t i s p a i d t o t h e

l e n d e r .  

B O N D S

From a tax standpoint, bonds sometimes offer you the chance to make more tax-free

income, but overall earnings aren’t necessarily higher. That’s why it’s important

to look at the rates being offered before making the investment. Make proper

calculations and get the help of a certified financial advisor to choose the plan that can

deliver you the best overall growth.

TAX ADVANTAGES

S E R V I C E S

[ H I D D E N ] F E E S

L I Q U I D I T Y

R I S K A N D S E C U R I T Y

Though fixed annuities typically come with lower fees (less than 1%) than variable annuities, fees for annuities are still high. Bonds are popular for their lower fees.

Based on your age and timeline for needing retirement money, liquidity may be a factor. Most annuities have a surrender term, usually spanning anywhere from 3–10 years. Most experts recommend that you wait until maturity to access your bond investment.

When it comes to risk and security, bonds are seen as a way to preserve capital and earn a predictable rate of return. During any financial crisis, investors from all over the world buy U.S. Treasury Bonds, which are seen as a safe haven during tough times.

Thank you.You can follow Goldstone Financial Group on Twitter: @GoldstoneFG.

18 West 140 Butterfield Road, 14th Floor Oakbrook Terrace, IL 60181

Original story: GoldstoneFinancialGroup.net