Questions From Our Community: Demystifying Annuities: Fixed, Variable, and Indexed Explained and Other Topics

Getting Retirement Right with Darrin McComas & Shon Peil

On this episode of Getting Retirement Right, hosts Darrin McComas and Shon Peil face the 'firing squad' to help listeners navigate the confusing and costly world of taxes, retirement planning, annuities and Social Security, empowering their audience to make informed decisions and secure their financial freedom.

In this episode, you will:

1. Uncover the impact of taxes on Social Security and why income considerations matter
2. Discover the potential of fixed-indexed annuities for reliable returns on your investment
3. Know when to exercise caution when considering variable annuities by understanding hidden fees and risks
4. Develop a strategic deaccumulation plan for tax-efficient withdrawals in your retirement
5. Evaluate pension withdrawal options and weigh the pros and cons of lump sum vs. monthly payouts

The resources mentioned in this episode are:

• Schedule an appointment with an advisor at AbrahamCo.com to discuss your unique retirement plan and situation.

• Attend one of the online classes or join the upcoming weekly live community to learn more about retirement planning and interact with others.

• If you have a variable annuity, consider a review with a professional to ensure it's the right product for you and to fully understand the fees and performance.

• Consider a fixed indexed annuity as a potential investment option for your retirement plan, offering growth potential with reduced risk.

• Seek professional advice before making any decisions about collecting Social Security, especially if you're still working and earning a high income.

• Ensure your retirement plan includes a variety of investment options and strategies tailored to your specific needs and goals.

Preventing Taxes on Social Security In general, retirees want to maximize their income while reducing taxes on Social Security benefits. The importance of this topic means understanding how Social Security benefits are calculated and the impact of other sources of income on the taxable portion of Social Security. Effective strategies can help retirees minimize or entirely avoid taxes on these benefits. Careful planning and a solid understanding of the tax rules surrounding Social Security can greatly impact one's overall retirement income. Darrin McComas and Shon Peil touch on the subject of Social Security taxes, recommending that individuals with high incomes refrain from taking Social Security benefits, as it can lead to unnecessary tax burdens. They also provide advice on finding other investment opportunities that can cater to an individual's financial goals. Being well-prepared and knowing when to seek expert advice can significantly contribute to managing Social Security taxes effectively.

There's a lot of different opinions out there. There's a lot of information. And just remember, just because you find it on the Internet does not make it correct.

- Darrin McComas