Annuities
Fixed indexed annuities (FIAs)
Fixed indexed annuities (FIAs) are a unique financial product that combines the security of a fixed annuity with the potential for higher returns linked to a market index.
Unlike traditional fixed annuities that offer a guaranteed interest rate, FIAs credit interest based on the performance of a specified index, such as the S&P 500. This allows for growth potential without directly investing in the market, thus protecting your principal from market downturns.
Ideal for individuals seeking a balance between risk and reward, fixed indexed annuities provide a reliable income stream in retirement while offering the opportunity for greater earnings compared to traditional fixed annuities. With the added benefits of tax-deferred growth and optional income riders, FIAs are a compelling choice for those looking to secure their financial future.
Fixed Annuities:
When it comes to safe and reliable investment options, fixed annuities stand out as a superior alternative to Certificates of Deposit (CDs).
While both fixed annuities and CDs offer guaranteed returns and principal protection, fixed annuities typically provide higher interest rates compared to CDs, making them more attractive for long-term growth. Additionally, fixed annuities offer the benefit of tax-deferred growth, allowing your investment to compound more efficiently over time without immediate tax liabilities. Unlike CDs, which often require you to pay taxes on the interest earned annually, fixed annuities let you defer taxes until you withdraw the funds, potentially lowering your overall tax burden.
Furthermore, fixed annuities can be structured to provide a steady income stream for life, ensuring financial stability in retirement—a feature not available with CDs. With the added advantage of flexible payout options and potential riders for enhanced benefits, fixed annuities offer a robust and versatile solution for those seeking safety, growth, and guaranteed income.