Get the Facts First
What Are the Benefits of an Annuity?
Make an Informed Decision About Your Retirement
When learning about retirement options many people ask
Are fixed index annuities a good investment?
While the answer is clear once you learn a few key points, you need to understand that everyone’s situation is different. It’s important to take the time you need to figure out if a product is the right fit for you. You want to make sure that an annuity can help by providing you with enough to live off in retirement. Finally, take a look at your goals for retirement. Do annuities align with your goals? In order to make an informed decision on how an annuity may align with your goals, it’s important to understand the benefits of an annuity.
A fixed index annuity’s index rate varies depending on a few key points. Insurance companies offer a variety of different insurance products all with their different advantages and choices. Depending on the company, product, and options you pick, your interest rate may vary. Here at Cornerstone Wealth & Tax Advisory Group, we only work with trusted insurance companies with a great reputation. In general, you should look for a reasonable rate of return. But it’s best to keep in mind that the insurance company is guaranteeing your earnings rate. Also, in many cases, they are providing income for life. This low-risk option might mean you don’t see a high ROI, but it also means you don’t need to worry about losing money. You get to keep your hard-earned money safe, all while maintaining a reasonable rate of return.**
It’s important to remember that fixed index annuities (FIAs) don’t use the stock market to produce earnings. Instead, insurance companies use what is called an “index.” The insurance company guarantees a minimum interest rate. That means, if the stock market tanks, it’s the insurance company — not you — that is taking the risk. With a fixed index annuity, the interest rate remains steady, no matter what the stock market is doing. If the stock market trends downwards, your fixed index annuity remains untouched.
A fixed index annuity (FIA) is a contract with an insurance company. You agree to place funds into the annuity. Then, the insurance company agrees to pay you a fixed interest rate on that money over a certain amount of time — for example, a period of 10 years. The first phase is accumulation, during which your money will grow. Once the waiting period ends, the payout phase begins. At this point, you can begin to receive payments, while still keeping your money safe.
Get Educated
Learn About Your Annuity Options
When thinking about your annuity choices, it’s important to get educated and review all your options. Are fixed indexed annuities right for you? Make the choice for yourself with the help of our experts. Just give our team at Cornerstone Wealth & Tax Advisory Group a call. We’re here to help answer your questions and guide you to make the decision that’s best for you. Learn about your options at one of our educational seminars.
