A person’s financial situation, goals, potential income and more are, in whole or in part, greatly influenced by the geographic area that they call home. Economic realities vary from state to state and even from county to county.
As a result of the complexities of real estate, the various minimum wages set at a state level, and the distinctions between states’ laws, different areas of the country have different costs of living, economic standards and retirement prospects.
As a result, the financial products that people choose will be influenced by their location. For this reason, it is important to strategize personal and family finances in the context of physical location in the country.
Moving to Texas and Arizona
Already an established life insurance provider in Pennsylvania, Mississippi, Louisiana and Delaware, Pillar is now offering services within Texas and Arizona and is providing MYGAs in these states.
The work by Pillar Life Insurance in Mississippi provides opportunities for financial growth and reliability to areas with the lowest cost of living in the country, but work in other states encompasses clients with a higher cost of living—including Texas and Arizona.
On the cost of living index, Mississippi ranks at 83.3, while Texas and Arizona have a score of 92.1 and 103.2, respectively.
The higher costs of living in these states is not necessarily negative but it does impact how a resident plans their finances. The costs reflect a higher concentration of high-paying jobs in these areas, the funds of which can be moved to a rewarding retirement plan.
MYGAs have proven to be an efficient way for people to accumulate money for retirement and beyond, and Texas and Arizona customers can now benefit from a tax deferred, guaranteed rate option from Pillar.
Diversifying Options for Robust Financial Wellness
Multi-year guaranteed annuities and certificates of deposit are both products meant to build finances over time, with a few important differences.
CDs operate through banks or credit unions, while MYGAs operate through life insurance companies. If complications arise, many MYGAs offer the option to withdraw up to 10% of the balance each year. The fixed rate of a MYGA is one of its most beneficial assets.
With a fixed rate that is not impacted by market fluctuations, the balance can grow over time into a larger, guaranteed payout when the term has concluded. This predictability in growth makes planning for the future simpler and safer.
A MYGA’s utility is true regardless of where in the country a person lives. However, for those in lower cost of living areas such as our clients in Mississippi, a MYGA is commonly used to help plan for retirement and shelter money in an annuity that is protected against market fluctuations that may have been fiscally dangerous otherwise.
When people need their money to last as long as possible, a MYGA is a steadfast way to grow money and keep it from the risks associated with being tied to the stock market. Conversely, individuals in higher cost of living areas such as Arizona tend to earn higher salaries that reflect that cost of living as a result.
In these circumstances, we have found that MYGAs might be used to put money to work after other retirement options, such as 401(k)s, are already maxed out by high-income earners. In these areas, purchasing a MYGA or SPIA can supplement retirement options and serve as additional diversification.
Choose the Annuity That Is Right for You
People in different parts of the country will have different goals for retirement and different obstacles to overcome. Pillar Life Insurance understands that the only people who truly understand how their surroundings, careers and long-term goals influence planning for their future are our customers themselves.
Pillar offers the opportunity for customers to take these decisions into their own hands and choose the annuity products that best serve their interests and their environment.
We are proud to make this portal available to residents of Pennsylvania, Mississippi, Louisiana, Delaware and now to Arizona and Texas.
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Try our annuity calculator and see how Pillar Life can grow your investment to meet your long-range financial goals.