Fixed Annuity

Fixed Annuity Investments

A Fixed Annuity provides the investor with an established interest rate that is known at the time of the purchase from an Insurance Company. Furthermore, these investments provide better interest rates than CDs (certificates of deposit).  Also, the earned interest becomes tax-deferred until the annuitant begins receiving payments. So tax-wise and investment-wise, this investment – short term or long term = returns a profit to the investor.

Normally for long term Fixed Annuity investments, you don’t choose your exact payment dates until closer to your retirement. At that time, the Insurance Company will configure the payments that you’ll receive after you stop paying into the fund. You will understand what payment you received based on interest rates, the payments you pay monthly, plus when you start taking payments.

Fixed annuities provide the beneficiary with a fixed future income in return for the original investment. Furthermore, fixed annuities guarantee a return on the investment, which pays an amount to the beneficiary — calculated and defined beforehand. One year or 30 years or in between, this investment can accumulate wealth. In times of high-interest rates, this investment can generate terrific results.

Fixed Annuities are recommended for:

  • Conservative investors who seek secure and stable returns on their investment.
  • Investors who are close to retirement age and looking for a viable alternative to monetize their pension funds and who are not willing to risk the stock market.

It is extremely important that investors know the potential benefits and risks that each of the annuity investment options offers. For a number of investors, fixed annuities appear very attractive. While for others, these investments appear too safe of an investment with not enough gain.

If you decide to invest in a fixed annuity, you should always consider investing in a joint-life annuity.  This will ensure the funds will go to your beneficiary upon an unforeseen death.

Finally, Our Annuity Counselors are available to offer complimentary evaluation services for qualified investors. We’ll analyze the annuities you own or are considering, to explain exactly what these contracts truly provide. We also help qualified investors identify opportunities that may be more suitable for a portfolio than an annuity. Contact us today to schedule an appointment.