5 Reasons Why You Should Consider an Annuity for Retirement

When planning for retirement, many focus on traditional investments like stocks and bonds. However, annuities can play a vital role in securing your future. Here are five reasons to consider adding an annuity to your retirement strategy:

1. Potential Growth with Market Protection

Fixed Indexed Annuities (FIAs) and Multi-Year Guaranteed Annuities (MYGAs) offer growth potential while protecting your principal. MYGAs provide a fixed interest rate for a set period, making them ideal for conservative savers. FIAs link interest to a market index, like the S&P 500, with no risk of losing your initial premium due to market downturns.

2. Tax-Deferred Growth

Annuities allow your money to grow tax-deferred, meaning you won’t pay taxes on interest until withdrawal. This can lead to more efficient compounding over time, helping to build a larger retirement nest egg. It’s especially beneficial if you’ve maxed out contributions to other tax-advantaged accounts like 401(k)s or IRAs. Distributions from annuities, 401(k)s or IRAs will generally be taxed at ordinary income rates. 

3. Portfolio Diversification

Relying solely on stocks and bonds can pose a potential risk to your retirement portfolio.  Annuities can diversify and balance your retirement portfolio by offering potentially stable returns. For instance, MYGAs deliver predictable growth, while FIAs offer market-linked growth without risking your initial principal, helping to stabilize your retirement plan.

4. Flexibility to Meet Goals

Annuities come in various types to match your goals. MYGAs and FIAs are excellent for those focused on growth without immediate liquidity and income needs. Many annuities offer optional features like riders for long-term care or guaranteed lifetime income, allowing for liquidity in a time of need and income for life for those focused on looking to mitigate the risk of outliving their savings.  

5. Peace of Mind

Knowing a portion of your savings is protected from market volatility and growing steadily can reduce financial stress. Annuities also offer the option to convert savings into a guaranteed income stream, helping to address the risk of outliving your savings.

Is an Annuity Right for You?

Annuities may not be for everyone, but they can be a valuable part of a retirement plan for those seeking protection, tax-deferred growth, and future income flexibility. Consult a financial professional to determine if a MYGA or FIA fits your goals.

Oceanview Life and Annuity Company offers competitive annuity products to help you grow and protect your retirement savings. Explore our offerings and see how we can support your financial future.

Discover the Oceanview Difference

• Financial Strength You Can Trust: Rated “A” (Excellent) by A.M. Best, showcasing our solid financial foundation, providing you with confidence regarding Oceanview’s commitment to meeting obligations.
• Simple, Transparent Retirement Solutions: Straightforward annuity products designed to help you meet your retirement objectives.
• Competitive Rates and Flexibility: Benefit from competitive rates and a variety of durations and crediting strategies.
• Client-Centric Approach: Features such as free withdrawals, nursing home and terminal illness waivers, and full liquidity for beneficiaries upon the annuitant’s death demonstrate our commitment to your financial security and peace of mind.

Disclaimers

Guarantees are based on the financial strength of the issuing carrier. The multi-year guarantee annuity product with form number IIC19 OLA SPDA, or variations of such, are issued by Oceanview Life and Annuity Company (d/b/a Oceanview Life and Annuity Insurance Company in California; NAIC# 68446). May not be available in all states. Not available in the state of New York or Vermont. Policy form numbers and provisions may vary. Rates are guaranteed depending on the guarantee period selected at policy issue.

Oceanview’s Single Premium Fixed Indexed Annuity Contract [ICC19 OLA FIA], product riders and state variations. Product features, limitations and availability may vary. Products not available in all states.

Annuities are generally designed as long-term retirement solutions and have certain limitations. They are generally not intended to replace emergency funds, serve as income for day-to-day expenses, or support short-term savings goals.  Please review the contract for full details.  

HARBOURVIEW ANNUITIES ARE PRODUCTS OF THE INSURANCE INDUSTRY AND NOT GUARANTEED BY ANY BANK NOR INSURED BY THE FDIC OR NCUA/NCUSIF OR ANY OTHER FEDERAL GOVERNMENTAL AGENCY. MAY LOSE VALUE. NO BANK/CREDIT UNION GUARANTEE. NOT A DEPOSIT. MAY ONLY BE OFFERED BY A LICENSED INSURANCE AGENT. GUARANTEES ARE SUBJECT TO THE CLAIM PAYING ABILITY OF THE ISSUING INSURANCE COMPANY.

Annuities issued by Oceanview Life and Annuity Company, 1819 Wazee Street, 2nd Floor, Denver, CO 80202. In California, doing business as Oceanview Life and Annuity Insurance Company www.oceanviewlife.com.

This material is a general description intended for general public, educational use. Oceanview Life and Annuity Company is not providing investment advice for any individual or in any individual situation, and therefore nothing in this correspondence should be read as such.

Withdrawals in excess of any Free Partial Withdrawal amounts are subject to a Surrender Charge and Market Value Adjustment (MVA). The MVA may have the effect of increasing or decreasing the Surrender Value of the withdrawal depending on the market interest rate changes.

The IRS may impose a penalty for withdrawals prior to age 59 ½.

Contracts purchased in an IRA or other tax-qualified plan provide no additional tax-deferral benefit, since they are already afforded tax-deferred status. All annuity features, risks, limitations, and costs should be considered prior to purchasing an annuity within a tax-qualified retirement plan. For non-qualified annuities, tax deferral is not available to corporations and certain other entities.

While care was taken in preparing this information and it is considered reliable, contract, application, illustration, and product disclosure language should be relied upon when contrary. The Company reserves the right to correct any typographical errors that may exist.

Funds allocated to an index do not directly participate or invest in the stock market or any index.

Rates, renewal caps, and declared interest rates, will always follow contract provisions relative to minimums and maximums stated.  Oceanview determines, at its discretion, the rates, renewal caps and, declared interest rates above the contractual minimums that are guaranteed.