looking to learn
the types of
annuity options available for you?
Types of Annuity Plans
It is important to understand the types of annuity choices you have. This is especially true if you’re looking to keep your money safe for the long term. Variable annuities, for example, change when the markets do. As such, those types of annuity plans do not protect your principal. However, if you have a fixed annuity or a fixed index annuity (FIA), your money is safe. In addition, an FIA has the benefit of possible higher rates of return than a fixed annuity. With an FIA, an insurance company promises to keep your initial investment safe. Yet, you also the ability to earn interest. In other words, you may gain earnings without risking your money in the market.


Play It Safe


Types of
Annuity Benefits
With a savings account, certificate of deposit (CD), or money market account, you pay tax on annual gains. But, an annuity can grow each year without paying taxes right now. In fact, taxes are only paid when money is taken out. In addition, some retirees may be able to buy an annuity via an IRA or other tax-qualified plan. This strategy may be useful for your overall retirement plan.
Another benefit of an annuity: early retirement rollover. If you retire under age 59 1/2 due to early retirement, a rollover may save you in taxes. Early retirement or severance which includes a lump-sum distribution from a 401(k) or pension plan is usually subject to large taxes if taken before age 59 1/2. However, you may be able to roll that money into an annuity. By doing so, you'd defer your taxes until you start making money from it. Indeed, FIAs can have tax benefits for some retirees.
Fixed index annuities are also a way to earn reasonable rates of return without counting the earnings as income. For instance, if you collect social security, any gains in your annuity do not count towards your income until you withdraw it. This allows you the flexibility to defer taxable income. So, your reportable income, therefore, doesn't affect your social security benefits.
Why Choose An FIA?


income for your life
FIAs may give you income for life. With an FIA, retirees can make sure their wealth lasts. Also, FIAs have many options and benefits to select from. Contact us today. Let’s help you enjoy your wealth and your retirement.