Services: Annuities
Protection Benefits
Guaranteed* Income Protection With An Annuity
A fixed indexed annuity (FIA) offers some pivotal features that many other retirement income options do not. First of all, an FIA gives you the opportunity to earn lifetime guaranteed* income. An FIA also protects your principal regardless of market conditions, unlike stock market-based accounts that may lose value. Given that retirees are living longer and longer, this aspect of protection is becoming more and more crucial. Are you concerned that you might outlive your retirement savings? An annuity could be something to consider. An FIA also provides other benefits, like some tax advantages. Additionally, you might be able to use an income rider to mitigate the impact of inflation on your retirement savings.
Reasonable Rate of Return**
The money in your FIA grows, tax-deferred, for a specific number of years (referred to as the accumulation stage) while continuing to stay protected by the issuing insurance company. Even in the event of a decline in the market, your principal is still protected. After this time frame concludes, you will be able to withdraw the money from your FIA in the form of lifelong guaranteed* income (this is referred to as the distribution stage).
FIAs and the Stock Market
An FIA does not invest directly in the stock market. Instead, the insurance company makes use of something called an index. An annuity’s interest rate is determined by a specific index’s performance. So, when the index is up, the interest rate will rise. However, when it is done, your annuity will not lose value. This way, you can profit from interest at a reasonable rate** without risking your money in the stock market.