Turn Part Of Your Savings Into Income You Can Plan Around
Saving for retirement is one decision. Turning those savings into dependable income is another.
We help you understand how much income you need, what a fixed indexed annuity can and cannot do, and where it may fit within your broader retirement picture.
A Balance Is Not A Paycheck
Retirement Income Has To Work In Real Life
Retirement may include Social Security, pensions, savings, investments, and other sources of income. The question is how those pieces work together when you start using them.
We begin by understanding what income you already have, what you need to cover, and how much of your future income needs to be dependable.
Understand What Needs To Be Guaranteed
Start with the expenses that have to be covered every month. Then look at how much income is already dependable and where a gap may exist.
Understand How A Fixed Indexed Annuity Works
A fixed indexed annuity is an insurance contract that may provide interest credits linked to an index and may offer income options under the contract terms. It is not the same as investing directly in the market.
Know What It Does Not Do
An FIA does not capture every market gain, and the result depends on caps, participation rates, crediting methods, fees, and contract terms. We explain those details before you decide whether the product fits.
Review The Tradeoffs
Surrender periods, withdrawal limits, taxes, liquidity, and carrier strength all matter. A product should be considered in the context of your complete retirement picture, not by itself.
Know Where Other Advice Belongs
Decisions involving investment management, tax strategy, Social Security timing, or broader retirement planning may require a licensed financial advisor or CPA. We will be clear about what we handle and when another professional should be involved.
What Talking This Through Looks Like
Start With The Income You Need
- 01
See The Full Picture
We look at Social Security, pensions, savings, investments, and the income you expect to need.
- 02
Identify The Gap
We help separate the income that is already dependable from the income that may depend on market performance or withdrawals.
- 03
Review The Options
If an FIA may be relevant, we walk through the guarantees, limits, costs, liquidity, and contract terms before you make a decision.
The Right Product Is Not Always The Right Answer
An annuity may be useful for one part of a retirement plan and inappropriate for another. Our job is to explain where it may fit, where it may not, and what questions deserve more attention.
Take money out of a 401(k), 403(b), or traditional IRA before you turn 59½, and the IRS adds a 10% early withdrawal penalty on top of the ordinary income tax you already owe on that money. It applies to most people in most situations, and few exceptions hold up. It is one of the most common ways people accidentally hand the IRS money they meant to keep.
An FIA carries a second penalty that has nothing to do with your age or the IRS: a surrender charge from the carrier if you take out more than the contract allows during its surrender period, usually the first several years you own it. It runs on its own schedule and can still apply after you turn 59½.
Borrowing against a 401(k) looks simple and is not. The loan is repaid on a schedule, usually through payroll deduction, and if you leave your job or are let go before it is repaid, the remaining balance can come due in a matter of weeks. Miss that window and the outstanding balance is treated as a distribution: taxed as income, and hit with the same 10% penalty if you are under 59½, on money you thought you had already borrowed, not withdrawn.
This explains how the rules work, not what your specific situation will owe or what to do about it. For the FIA piece, talk to us. For the 401(k) or 403(b) itself, that decision belongs with a financial advisor or your CPA.
An FIA is not the right fit for every dollar. Money you may need on short notice, or money you cannot leave in place through the surrender period, generally belongs somewhere more liquid instead.
Not Sure How Much Income You'll Need?
You do not need a complete retirement plan before starting the conversation. Bring what you know, and we will help you identify the next question worth answering.
True Gold Financial is an independent agent based in Austin, Texas, licensed to help with Medicare, life protection, and retirement income planning. Texas Department of Insurance license Texas Resident License 1911662 (NPN 17257134). Nothing on this site is an offer of cover or individual financial advice.