Retirement Planning
Four Type of Investments
Annuity, Stocks, Mutual Fund, CD
RETIREMENT PLANNING
Dependable and Reliable Investments for a Secure Financial Future
An annuity is a contract with an insurance company where you invest a sum of money in exchange for a future stream of income, often for retirement.
- Guaranteed Income: Provides steady, predictable income for life or a fixed period.
- Tax-Deferred Growth: Earnings grow tax-deferred until withdrawn.
- No Contribution Limits: Unlike IRAs or 401(k)s, there are generally no annual contribution limits.
- Protection from Market Risk: Fixed annuities offer a guaranteed return.
- High Fees: Some annuities come with high administrative or surrender charges.
- Limited Liquidity: Difficult to access your money early without penalties.
- Complex Products: Can be confusing, especially variable or indexed annuities.
- Lower Growth Potential: Especially compared to stocks or mutual funds.
Stocks represent ownership in a company. When you buy a stock, you own a share of that company’s assets and earnings.
- High Growth Potential: Historically, stocks offer the highest long-term returns.
- Ownership: You benefit from the company’s success (dividends, capital appreciation).
- Liquidity: Easy to buy and sell.
- High Volatility: Prices can fluctuate widely, especially in the short term.
- Risk of Loss: Companies can fail, leading to loss of investment.
- Emotional Investing: Risk of panic selling during downturns.
Mutual funds pool money from many investors to invest in a diversified portfolio of stocks, bonds, or other assets.
- Diversification: Spreads risk across many investments.
- Professional Management: A fund manager handles investment decisions.
- Accessibility: Easy to buy/sell and good for beginners.
- Retirement Friendly: Often used in IRAs and 401(k)s.
- Fees: Some mutual funds have management fees or sales charges.
- Market Risk: Can lose value based on the market performance.
- Limited Control: You don’t choose the individual investments.
- Capital Gains Tax: You may owe taxes even if you didn’t sell shares (in taxable accounts).
A CD is a savings product offered by banks that locks your money in for a fixed term with a fixed interest rate.
- Safety: FDIC-insured up to $250,000 per depositor, per bank.
- Predictable Returns: Fixed interest rate means you know exactly how much you’ll earn.
- Low Risk: Ideal for conservative investors.
- Low Returns: Returns are typically much lower than stocks or mutual funds.
- Penalty for Early Withdrawal: You lose interest or pay a fee if you withdraw early.
- Inflation Risk: Returns may not keep up with inflation.
When to Start
Start planning early—ideally 5–10 years before retirement. Meet with a tax advisor or retirement planner to customize your strategy. Keep up with Social Security statements, RMD rules, and IRA/401(k) contribution limits each year
changes in Social Security
Social Security benefits remain a key income source for retirees, but there are some notable changes and trends to be aware of
Reduce Taxes in retirement
Taxes don’t go away in retirement—but smart planning can reduce them significantly.
Planning for IRA and 401(k)
Offered by employers, often with matching contributions (free money—don’t miss it!) In 2025, you can contribute up to $23,000 (if age 50+)
Your retirement Planning Quote
Have questions? Need help enrolling?
At Protect Plus Insurance & Financial Services, we guide you through the entire process- we will help you make the best choice for your health and budget.
contact@ppifpro.com
Address
4837 North Dixie Hwy,
Pompano Beach, FL 33064
Phone
(561) 672-9548
(954) 482-0226