How do annuities and retirement savings plans work?

Video Transcript:

What are your retirement goals? Do you see yourself traveling the world, starting new hobbies, or spending more quality time with your loved ones? Many people retire in their 60s, but some can expect to live another 17 to 30 years. Have you thought about how much money you'll need to live the way you planned?

You may expect your living expenses to go down when you retire, but many of your bills and daily expenses will stay the same. Some costs, like healthcare, can even increase. The truth is, without a solid retirement plan, your golden years might not be as golden as you'd like.

That's where retirement savings accounts can help. American Fidelity offers fixed and variable annuities that can be used in 403b and 457b plans. These accounts allow your funds to be deposited pre-tax, helping reduce your taxable income during your working years. Some plans even offer loan options.

So how do you decide which annuity is right for you? A fixed annuity may be appropriate for investors who prefer minimal risk and competitive interest rates, helping protect the original investment. A variable annuity may suit those who prefer investments with more risk. This account uses stocks and bonds which may result in positive and negative account value changes over time. You can also combine fixed and variable accounts to help you reach your investment goals. No matter which approach you take, American Fidelity offers retirement savings accounts that may help. Regardless of which you choose, the most important step in planning for your retirement is to simply start.

American Fidelity, a different opinion.