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Contact us today to find out if a fixed annuity is right for you!
Retirement planning tool
With a fixed annuity, money invested earns a fixed rate of interest that is guaranteed by the insurance company. The main advantage to a fixed annuity is that there is minimal risk involved. Because fixed annuities are not tied to performance of the stock market, the disadvantage is that you will miss out on gains if the stock market performs well. Fixed annuities provide a series of regular payments for a specified dollar amount for a specified term.
Two phases to an annuity:
- accumulation phase: money is invested over period of time or lump sum and it earns rate of return
- annuitization phase: funds are withdrawn regularly (such as monthly or annually) from the contract until you die
It is recommended that annuities be purchased as part of your overall financial plan. There are complexities to annuities and financial planning that involves many options and considerations.
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