Fixed Annuities

When You’re Looking for Growth Without Market Risk

Are you searching around for an investment plan that is fixed, as opposed to variable? A fixed annuity is simply one which doesn’t ebb and flow like the stock market does. The minimum won’t drop below your initial premium.

An annuity is a contract you purchase from an insurance company, designed for long-term investing. Fixed annuities allow you to lock in a rate of earning that, even over long periods of time, remains unaffected by market fluctuations. The principal investment and a specified interest rate are both guaranteed.

What Are the Benefits?

  • A fixed annuity’s tax-deferred status allows you to reap from compounded growth.
  • The lower investment minimums provide more of an opportunity to get started.
  • Principal and interest protection are possible because they offer minimal investment-risk exposure, and the rates are typically higher than traditional savings methods. Also, with no market risk and guaranteed interest rates, annuities are a wise path.
  • With beneficiary protection, you can pass assets to beneficiaries and avoid costly probates.
  • There is flexibility: You have the ability to choose from different payout options: set payments for a specified period or a lifetime stream of income.

Immediate vs Deferred Fixed Annuities

An immediate fixed annuity provides a guaranteed and predictable stream of income during the payout period. On the other hand, a deferred annuity is specifically designed to help accumulate assets for retirement. It also offers the ability to turn those assets into a guaranteed stream of income at some point in the future. You decide when payments begin and how long to receive income.

What Else Do I Need to Know?

The values will fluctuate based on investment option performance. Annuities have restrictions and limitations, and fees and charges will vary based on the product. You may be charged a penalty if you take your money out early. Please remember that investing involves risk, including possible loss of principal. All guarantees and protections are subject to the claims-paying ability of the issuing insurance company.