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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

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Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

November/December 2023

Laddering Annuities Can Provide a Steady Income

3D illustration of a group of step ladders, all gray and one white,  on a blue wall with a target (bulls eye) and copy space. Ladder of success or Goal concept.

Are you seeking an investment that provides guaranteed income in retirement? Consider immediate annuities.


The Laddering Strategy
With an immediate annuity*, you receive fixed payouts over several years in exchange for an initial lump-sum payment. However, you may be able to minimize the risk of low returns and take advantage of any rise in interest rates that occurs by laddering annuities.

The laddering strategy involves purchasing immediate annuities over several years. So, instead of spending your money on a single annuity that locks you into a lifetime interest rate, you invest in multiple annuities over time. You might buy one annuity a year for four years or an annuity every three years for 12 years, etc. The time frame for staggering each annuity is up to you.

You can also ladder annuities based on the start dates of when you’ll begin receiving the payments.


Laddering Benefits
Annuity payouts are based on money invested, the prevailing interest rate, and the recipient’s life expectancy. So, the older you are when you begin receiving payments, the larger those payments are likely to be. And, if interest rates are higher in later years, you could benefit from using a laddering strategy.


The Downsides
Investing a large sum in immediate annuities means you’ll no longer have access to that money. Remember that surrendering an annuity can be costly and difficult if you have an unanticipated expense in the future and need your cash.


It’s also important to understand that unless the annuity is a joint lifetime annuity or includes a survivor payout, annuity payments stop at your death.


Food for Thought
If the security of having a guaranteed income appeals to you, consider reviewing laddering strategies. Your financial professional can help you find the right annuity products for your situation.

*Annuitants receive a fixed income stream based, in part, on the interest rate guarantee at the time of purchase. Annuity guarantees are backed solely by the claims-paying ability of the issuing life insurance company.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

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