The Role of Annuities in a Diversified Retirement Portfolio

A well-diversified retirement portfolio is the cornerstone of financial security. While stocks, bonds, and other traditional investments often take center stage, annuities can play a vital supporting role in ensuring a stable and secure future. Here’s how annuities can enhance your retirement portfolio and provide a unique layer of protection and growth.

What Are Annuities?

Annuities are financial products offered by insurance companies designed to provide potential growth, protection, and income. They come in various forms, such as Fixed Indexed Annuities (FIAs) and Multi-Year Guaranteed Annuities (MYGAs), each offering unique benefits tailored to different retirement needs.

Why Diversification Matters in Retirement

Diversification is about spreading risk by allocating assets across different investment types. While traditional assets like stocks and bonds are essential for growth and stability, they can be subject to market volatility. Adding annuities to your portfolio can help balance this risk by offering features that other investments do not provide. 

How Annuities Complement Traditional Investments

1. Principal Protection:
   • Unlike stocks or mutual funds, FIAs and MYGAs guarantee your principal is protected from market downturns. This feature can provide peace of mind, especially during turbulent market periods.
2. Growth:
   • MYGAs offer a fixed interest rate for a specific term, delivering predictable and reliable returns.
   • FIAs provide growth potential linked to a market index while protecting your initial investment.
3. Tax-Deferred Savings:
   • Annuities allow your earnings to grow tax-deferred until withdrawal, making them a valuable tool for compounding savings efficiently.
4. Guaranteed Income Options:
   • Annuities can provide a reliable income stream in retirement, helping to mitigate the risk of outliving your savings—a common concern for many retirees.
5. Reducing Portfolio Volatility:
   • Including annuities in your retirement portfolio can assist in reducing exposure to market volatility, creating a more balanced and resilient financial strategy. 

When Should You Consider Adding Annuities?

• Early Accumulation Phase: After younger investors consider other investment options, FIAs and MYGAs can serve as an additional tool for tax-deferred growth and long-term financial stability. 
• Pre-Retirement: If you’re nearing retirement, annuities can provide a secure growth strategy while protecting your savings.
• Post-Retirement: Annuities can provide a secure growth strategy with income options that can deliver consistent cash flow, reducing reliance on other investments.

Tailoring Annuities to Your Retirement Needs

The type of annuity you choose depends on your financial goals:

• For Growth: Consider FIAs or MYGAs for predictable, stable returns.
• For Income: Look into deferred or immediate income annuities to ensure a steady cash flow.
• For Protection: Use MYGAs and FIAs to safeguard your principal while receiving steady income for MYGAs or potential market gains in FIAs.

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

The Harbourview MYGA (Generic Policy Form ICC19 OLA SPDA) and Harbourview FIA (Generic Policy Form ICC19 OLA FIA) are single premium deferred annuities. May not be 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, 1331 17th St., Suite 1050, Denver, CO 80202. In California, doing business as Oceanview Life and Annuity Insurance Company www.oceanviewlife.com.

A.M. Best Rating as of December 11, 2024, is subject to change. A (Excellent) rating is third highest of fifteen possible rating classes for financial strength. The outlook assigned to these Credit Ratings is stable.

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.

Neither Oceanview Life and Annuity Company nor any of its representatives may provide tax or legal advice.

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 compiling this information, the Company reserves the right to correct any typographical errors that may exist.

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.