Now, more than ever, it is critical you start formulating a plan for the future. Financial security is imperative if you desire a long, and prosperous retirement life. Fixed index annuities can help make this a reality.

Annuities serve the same purpose as all other retirement plan options, to provide long-term financial security for yourself and your family.

There are four types of annuities in general, variable, immediate, fixed and fixed index. All share several similar characteristics, at least at the base level. Basically, they work as a contract between you and your financial institution. You agree to pay a premium, which the financial organization will return with interest. Any money placed into an annuity is tax-deferred.

A fixed index annuity is a contract between you and an insurance company in which you agree to either make a lump-sum payment or series of payments. In return, you will receive income in the form of payments ever a period of time. These payments can begin immediately or after a set period of time. When considering a fixed index annuity, here are a couple of things to keep in mind;

  • With a fixed index annuity, you will not lose money, regardless of index performance. You can lose money, however, if you withdraw money or surrender your annuity during the early withdrawal period.
  • Many fixed-indexed annuities offer riders that can provide guaranteed income for life or additional death benefit options for beneficiaries.

Fixed-index annuities can be confusing; to best understand how they work, speak to your financial advisor, Dan Fisher. Choosing the best annuity for you depends on several variables. Give us a call with your financial concerns.