Learn about Annuities from a Financial Planner in Sonoma County

August 20th, 2018 → 8:44 pm @ // No Comments

When deciding how to invest your hard earned money, it’s important that you work with a financial planner in Sonoma County to ensure that your resources are used wisely. Our team at Montgomery Taylor has great experience in this area of the marketplace and in this latest post, we’ll explain what you should know about annuities before investing.

An index annuity might be a valid alternative to stock market investment

If you’re considering investing in the stock market, you might take into consideration an index annuity as an alternative. Because, while this investment is also tied to the stock market, you’re protected against the potential downsides of market swings. If your indexed annuity is tied 60% to the S&P 500 index market, your annuity will rise 6%. There ensures complete protection against the downsides of stock market investment.

However, there are downsides

There are however several downsides of an index annuity to consider. For example, you often pay a significant penalty for withdrawing your principal early. They can also come with high commissions, which severely reduce your returns.

Immediate income annuities can provide higher payments with age

Another element to consider when investing in annuities is your age. If you’re an older person and you …Read More


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