Learn More About
Annuities
Annuities
Annuities can provide a guaranteed lifetime income* in retirement.
Additionally, a fixed indexed annuity (FIA) may be able to provide protection of your principal, regardless of stock market conditions. An FIA may be an ideal option for helping to secure your retirement.
However, FIAs offer additional advantages, more than other types of annuities. First, FIAs are tax-deferred. Any potential indexed interest you gain is not taxable upon credit of the interest. Instead, you don’t pay taxes until you withdraw the money.
Furthermore, an FIA can provide a reasonable rate of return** over time while still keeping your principal secure. There aren’t many options that can do this. And, an FIA may also have options for add-ons such as long-term care riders or income riders.
Lastly, with an FIA, you may also be able to provide income to your loved ones after you are gone.
How Annuities Work
An FIA has two stages. First, accumulation. The accumulation stage begins as soon as you purchase the FIA. During this time, the annuity can earn a fixed rate of interest, guaranteed* by the issuing insurance company. However, it could also earn an interest rate based on the growth of an index. Then, once this stage ends, the distribution stage begins. At this point, you can begin taking income payments. These payments can come at any rate: monthly, quarterly, annually, etc. You may also choose to not withdraw money yet. There are a number of options with a fixed indexed annuity.
Other FIA Benefits
An FIA grows tax-deferred. The payout from an annuity is typically much larger than the amount put into it. With an FIA, you’ll need to assign beneficiaries. If you choose a death benefit or a spousal benefit, your beneficiaries will be able to access these funds without probate. Usually, you can select at least one index to align your FIA to. The interest rate of an annuity is based on several factors. For example, the annuity's CAP, participation rate, and spread. And, there are a number of different annuity crediting methods. If you want to learn more about how annuities work, then please, reach out to us.
Reach Out
Contact us to learn more about annuities. You can schedule a one-on-one meeting, or attend an educational seminar event if one is coming up. Events fill up quickly, so make sure you reach out about going now if you’re interested.