Investor Info for Fixed Index Annuities
You’ve likely heard of annuities, but do you know what they are and why they’re a solid financial investment? A simple definition for an annuity is that it’s a product insurance company issue that either accumulates interest or provides guaranteed income. Annuities are popular for investors seeking safe and guaranteed money or a regular flow of income. There are several types of annuities to choose from, and all have different structures. Sun Cities Financial Group can help you find the right annuity at one of our locations. Annuities are a specialty, and we offer sound financial expertise and strategy for investors to take the worry out of your personal investments.
Types of Annuities Available to Investors
You can find several types of annuities for your investment, each with its own merits and drawbacks. A few of the most common types include fixed annuities, variable annuities, and fixed index annuities. Sun Cities Financial Group offers fixed index annuities to our customers in Phoenix, AZ. These annuities offer a fixed rate with an option for investors to tie what they accumulate to a chosen stock market index, such as the S&P 500. In other words, you’re putting the interest you earn back to work for you to earn more over time. A fixed index annuity also carries guarantees of growth. As the newest type of annuity, you may hear it referred to as a hybrid annuity. That’s because it provides the best parts of fixed and variable annuities. The biggest perk of fixed index annuities is that your interest benefits from market gains are protected against losses. Earnings left to accumulate in these annuities are tax-deferred, providing a guaranteed income for you and your beneficiaries if needed. You can even make withdrawals against your annuity for emergencies or medical issues. Your retirement income is a lot less worrisome when you work with our team for a fixed index annuity.
Deciding if an Annuity is the Right Choice for You
Because banks offer such low CD rates today, Sun Cities Financial Group is constantly asked about annuities by investors. They want to know about the various types there are and what features they offer. After learning about you and your circumstances, we primarily focus on fixed index annuities for most common situations, including:
- You’ve worked hard your entire life and collected assets in a 401(k), IRA, or other funds for retirement and now you must produce a flow of income to sustain you for the remainder of your retirement.
- You’re fed up with the market’s ups and downs and stressing about a possible huge decrease that’ll ruin your portfolio. You desire a safe, stable return, and CDs are too low. You’re looking for principal protection that’s safer than the stock market.
- You’ve been a committed investor in CDs for the bulk of your investments, and you’re tired of their low yields. You need a reasonable rate of return, but it has to have principal protection and safety.
How Do Annuities Work?
Annuities are basically insurance contracts. You start by paying a set amount of money now or over time. In exchange, you’ll receive a lump-sum payment or a stream of income in the future. The payouts you’ll receive depend on the type of annuity as well as its details. For example, if you invested $100,000 into a deferred income annuity today at age 60, you would receive just short of $700 a month or just over $8,000 a year in income from it.
Why Invest in an Annuity?
Investing in an annuity is right for many people and numerous reasons. First, annuities offer stability and flexibility. You can decide how much to invest, and which type of annuity is best for you. Annuities come with tax advantages, as earnings left to accumulate are tax-deferred. That means your investment can keep growing tax-free until your funds are withdrawn. Most annuities can be passed to your heirs in the event of your death. However, it’s important to learn more about the ins and outs of annuities, and our team can help you do exactly that.
Learn How We Can Help
Sun Cities Financial Group is here to help you plan for your future with reliable financial services, including annuities and CDs. We focus on serving the best interests of our clients in the Phoenix, AZ area. We’re here to help you with retirement planning so you can obtain the highest yields without risks. Contact us today so we can help you learn more and get you started on the right track.