Fixed Annuities
Fixed annuities can offer fixed interest rate accumulation and guaranteed income and help maximize the wealth you pass on to your heirs. With an annuity’s fixed rate of return, you can protect your principal and predict your earnings, which are not taxed until you withdraw your money. Fixed annuities are considered to be a more conservative investment option than variable annuities. Funds in fixed annuities grow steadily, and are not subject to downfalls in the stock market. Fixed annuities offer a guaranteed payment, with the payout amount based on the assumed future returns of the investments and the annuitant’s life expectancy. The payment can be fixed for life, or can allow for future increases.
Fixed annuities are regulated by state insurance departments. Fixed annuities are not securities and are not regulated by the SEC. Equity-indexed annuities combine features of traditional insurance products (guaranteed minimum return) and traditional securities (return linked to equity markets). Fixed annuities are designed to provide retirement savings and , at your option, a guaranteed income stream. Most fixed annuities offer a choice of methods to receive income, one of which usually guarantees an income stream for life.
Fixed annuities pay a “fixed” rate of return. The monthly payout is a set amount and is guaranteed. Fixed annuities can potentially pay more than I Bonds, because insurance companies can invest in higher-yielding assets. Insurers’ portfolios that support fixed annuities are primarily invested in publicly-traded and privately-placed corporate bonds and commercial mortgages, which have a higher yield than Treasury securities of comparable maturity. Fixed annuities are designed for long-term investing to help meet retirement and other long-range goals. Fixed annuities are not suitable for short-term goals because substantial tax penalties and early surrender charges may apply if you withdraw your money early.
Fixed annuities are characterized by a minimum interest rate guaranteed by the issuing insurance company. Typically, a minimum annuity benefit is also guaranteed. Fixed Annuities: Fixed annuities are backed by highly rated insurance companies which guarantee your principal amount deposited. Subject to the claims paying ability of the issuing insurance company.) Because you earn compounded interest on the money that would have gone to pay taxes, savings grow faster than they would in a taxable investment at the same rate. Fixed annuities are a way for you to save for your retirement. Basically, it’s a contract between you and an insurance company.
Call Brian to see if a fixed annuity is right for your unique situation call 509-218-7329
