Fixed Annuities in Phoenix, AZ
Secure Your Financial Future With Fixed Annuities
Fixed annuities are a great way to invest your money in an easy, straightforward manner. Guaranteeing a fixed rate on return for your investment, fixed annuities are low-risk and reliable.
At Sun Cities Financial Group, we help clients across Phoenix successfully file for annuities to ensure a financially secure future. As industry experts with more than 20 years of experience, we’re passionate about helping you understand the complexities of fixed annuities.
What Is a Fixed Annuity and How Does it Work?
What are fixed index annuities? They’re basically insurance contracts between you and an insurance provider like Sun Cities Financial Group. The goal of fixed annuities is to wisely invest your money so you can live comfortably after retirement. As you steadily make fixed-income payments over time, the savings in your annuity will grow at a fixed interest rate. Once you’re ready to receive the money, you can receive a lump sum or periodic payments, depending on your contract.
Pros and Cons of Fixed Annuities
There are handful of pros and cons of fixed index annuities to weigh before making a final decision.
Fixed annuities offer a low-risk, simple, and predictable way to earn income for the rest of your life. As fixed annuities are tax-deferred, you won’t need to worry about losing any of the money you’re building over time due to taxes. Once you do start using the money in retirement, it can then be subject to taxes, but since you’ll most likely be in a lower tax bracket, it won’t be as big of a loss.
The fixed rate of return on fixed annuities is both positive and negative. On one hand, you’ll be guaranteed a set amount of money, which provides stability. However, if the stock markets shot up, you’d miss out on the opportunity to earn far more than what’s currently sitting in your account.
Other cons to fixed annuities are they don’t offer inflation protection and they charge penalties for premature withdrawals.
Types of Fixed Annuities
There are three types of fixed annuities, which are:
- Traditional Fixed: These accrue money over time based on a fixed rate that is prone to change after a certain number of years.
- Fixed Index: These are linked to the performance of an underlying index, like the Dow Jones, without the outright risks of stocks.
- Multi-Year Guaranteed Annuity (MYGA): Unlike traditional fixed annuities, MYGA does not have an expiration date for its fixed interest rate and will remain the same the entire time.
As far as the best fixed annuities, it’s up to you to assess your needs to determine which works better for you.
Who Should Get a Fixed Annuity?
Fixed annuities are best for people who want to prepare for retirement by setting aside money in a low-risk way that isn’t affected by the volatile stock market.
What Goes Into a Fixed Annuity Rate?
Along with the original amount of money you invested, you’ll get a specific fixed income rate that grows your investment over time. Fixed index annuities rates vary depending on the market index, but once they’re locked into your contract, that number will remain consistent for many years.
Are Fixed Annuities Guaranteed?
Fixed annuities are not guaranteed by the Federal Deposit Insurance Company (FDIC). They are, however, guaranteed by state insurance commissions. That’s why choosing Sun Cities Financial Group – an affable, A+ business on the BBB – is a safe way for you to invest your annuity.
File for a Fixed Annuity With Sun Cities Financial Group
Serving the Phoenix community for more than 20 years, we hold ourselves to the highest standard of service, as is reflected in our A+ Better Business Bureau rating. Contact us today for more information on fixed annuities and how they can benefit your future.