Before going into the benefits of having Annuities inside a 401(k) plan let's address a few quick questions. For the average worker investing in his 401(k) plan these questions do not have a ready answer. Here are the questions:
Based on the amount of money you have accumulated to date, and based upon the amount of money you're putting into your 401(k) regularly, what is the total sum of money you will have accumulated on the day you retire?
How much income will that accumulated sum of money pay you on a regular, frequent, and guaranteed basis?
Will that income produced by that sum of money last as long as you live- no matter how long that might be?
There are other issues to look at as well. For example:
Market losses are beyond the control of participants. What will happen if the Market crashes again? Retirement capital and retirement income cannot be accurately predicted.
High fees, charges, costs & expenses are incurred- e.g. sales charges, loads and 12(b)1 fees.
Complicated selection options- seen as risky, confusing and uncertain.
Inadequate and impersonal service from Plan Administrator.
While allowed, generally no Roth option is offered.
There is no "Retirement Red Zone" protection in place.
Solution to 401(k) Problems - Fixed Index Annuities!
With all of the issues listed above, wouldn't it be great if there was an alternative way to plan for your retirement that eliminated all these concerns? Well there is - if your current 401(k) plan allows for in-service distribution then you can start building your retirement income in a more secure environment. Consider the following if your money was in a Fixed Index Annuity:
The accumulation amount is market-proof meaning no more Market losses!
In addition the "Roll-up Rate" locks in all Market gains for the future.
Guaranteed lifetime income option means your exact retirement lifetime income can be known at any given age.
And your income is guaranteed for life- no matter how long that is! You CANNOT outlive your money! This is a true Retirement Plan, not a risky Investment Plan.
A "defined benefit" is created with "Retirement Red Zone" protection.
Roth option is available meaning TAX-FREE retirement is also available.
Absolutely no sales charges, loads, or 12(b)1 fees.
Personal service from your own agent instead of impersonal Administrators.
Finally, with some of these Annuities you can receive up to a 10% bonuson all new money you put in for as long as 7 years!
When you compare the benefits of rolling your money into a Fixed Index Annuity instead of leaving it in your current 401(k) plan options (where it could become a 201(k) again- remember?) the only question should be: Am I able to move my 401(k) funds along with future contributions into one of these plans?