When it comes to retirement planning many baby boomers still procrastinate and do not understand what products are needed to grow and protect their money.

A LIMRA (Life Insurance and Market Research Association) study states that fewer than six out of 10 pre-retirees who believe they will live longer (to age 80) are confident that they will have the income necessary to meet their financial needs. What if they live to be 90 or 100? More and more people are living to be 100 and many more will continue to live to this age in the future. But only one-third or less of the pre-retirees believe they will have enough money should they live to 90 much less if they live to be 100.

Which financial vehicle should the pre-retiree be using for their retirement? There are many to choose from: 401Ks, Roth IRAs, brokerage IRAs and annuities, among others. Which ones will perform the best? What about Social Security? Will it provide enough of an income stream? Many retirees and pre-retirees are learning that it won't. Plus, many pre-retirees are not lucky enough to have a pension. What they need are income sources that will last for the rest of their lives.

There are many choices and decisions a pre-retiree must make when planning for his/her retirement.

What has come up in the annuity market are fixed indexed annuities, which provide distinct advantages. They offer the owner protection of their principal and earnings in a down market while also providing upside potential. Fixed indexed annuities also allow retirement savings to grow without taxation until the money is withdrawn.

These annuities can also provide additional guaranteed lifetime retirement income to go along with Social Security and any pension payments.

It is my opinion that this new fixed indexed annuity should be a part of your diversification of assets. It offers the opportunity of earning more interest than a fixed annuity and the protection of not losing any principal or interest earnings when the market is going down.
It is a great vehicle for the consumer who is wary of market risks, who wants more deferred options, and who is looking to participate in market growth while protecting his/her principal from volatile periods.

If you are looking for ways of growing your money for retirement and protecting it from the down market, find a professional adviser who can prepare a formal, written plan that will include not only ways to grow and protect your money, but will find ways to help you reduce your taxes and who will explain the advantages and disadvantages of the products you are using as you're approaching your retirement.

Donald F. Rosales, is president of MAS Group, which specializes in retirement services, investment planning, tax and business services as well as wills and trust planning. MAS Group is located at 121 E. Birch Street, Suite 404. For more information, contact the company at 928-774-9091 or masgroup@yahoo.com.