Understanding the Investment Horizon Annuity for Long-Term Financial Goals

When it comes to planning for the future and securing your financial stability, the investment horizon annuity can be a valuable tool. This annuity option offers individuals the opportunity to protect their money from market ups and downs while working towards their long-term financial goals.

What is an Investment Horizon Annuity?

An investment horizon annuity is an insurance contract that provides individuals with a way to combine the flexibility of mutual investment funds with loss protection. This annuity option allows investors to plan for their retirement years with confidence, knowing that their investment is protected.

One example of an investment horizon annuity is the TruStage™ Horizon II Annuity. This annuity offers clients investment opportunities with guaranteed loss protection, personalized diversification, and a return of purchase death benefit.

The Benefits of an Investment Horizon Annuity

Investing in an investment horizon annuity can provide several benefits for individuals looking to secure their financial future:

• Protection from market volatility: An investment horizon annuity helps protect your money from market ups and downs, offering stability and security for your long-term financial goals.
• Opportunity for growth: While providing loss protection, an investment horizon annuity also offers the opportunity for growth. This means that your investment has the potential to grow over time, allowing you to reach your financial goals.
• Control over your investment: With an investment horizon annuity, you have control over your investment decisions. You can choose the time period for your investment and have the flexibility to make withdrawals when needed.
• Guaranteed income: An investment horizon annuity can provide a steady stream of income during your retirement years. This can help ensure that you have a reliable source of income to support your lifestyle.

Investment Time Horizon and Risk

Understanding your investment time horizon is crucial when planning for your financial future. Your investment time horizon refers to the length of time you plan to hold your investments until they are sold. Different investment time horizons come with different levels of risk.

Short-term investment horizons, typically less than 5 years, are associated with higher levels of risk. This is because short-term investments are more susceptible to market fluctuations and volatility.

On the other hand, long-term investment horizons, typically more than 10 years, are associated with lower levels of risk. Long-term investments have more time to recover from market downturns and benefit from compounding returns.

Choosing the Right Investment Horizon Annuity

When considering an investment horizon annuity, it's important to evaluate your financial goals, risk tolerance, and investment time horizon. Consulting with a financial advisor can help you determine the best annuity option for your specific needs.

Remember, an investment horizon annuity is designed for long-term financial goals, such as retirement planning. It's important to assess your financial situation and consider the benefits and risks before making any investment decisions.

Conclusion

The investment horizon annuity is a valuable tool for individuals looking to secure their financial future. With its ability to protect your money from market ups and downs, provide growth opportunities, and offer control over your investment, this annuity option can help you reach your long-term financial goals.

Understanding your investment time horizon and consulting with a financial advisor can assist you in choosing the right investment horizon annuity for your needs. By carefully considering your financial goals and risk tolerance, you can make informed investment decisions that support your long-term financial stability.