Fixed Index Annuities in Phoenix, AZ
High-Yield Investments With Sun Cities Financial Group
Offering more potential to earn than regular annuities, without the risk of loss associated with variable annuities, the middle-ground option of fixed index annuities offers a safe yet profitable choice. If you’re interested in learning how annuities can help secure your financial future, our skilled and friendly team at Sun Cities Financial Group would love to help.
What Is a Fixed Index Annuity?
Fixed index annuities are a type of annuity that offers a fixed interest rate combined with stock market index performances. Fixed annuities offer less risk than traditional stocks while providing more potential to earn than regular annuities. Despite their similarity to the stock market, these investments are still considered tax-deferred, insurance-based retirement plans, not stock or bonds.
How Does a Fixed Index Annuity Work?
Like regular annuities, you’ll invest a lump sum of money into a savings account with a company like Sun Cities Financial Group. However, the difference between the two is that with a fixed index annuity, you’ll enjoy the opportunity to invest in stock indexes like S&P 500 or Nasdaq, creating much more space to grow your assets. Unlike standard index funds, your money will be protected against loss of principal, guaranteeing you won’t lose below your original input. In exchange for this safeguard, your returns won’t be as high as typical index funds.
How to Invest in a Fixed Index Annuity
You’ll need to purchase an annuity contract to open a fixed index annuity. Typically, you’ll invest a set amount of money, but you can also pull from your retirement funds. With the help of a financial advisor, you can invest the money across a series of different stocks.
Once you’re ready to start withdrawing the money you’ve been accumulating, you can switch the savings into a stream of income, choosing a spread-out payment plan over time for you to enjoy your funds for the long term. Keep in mind that all annuities feature a surrender period of five to seven years, so if you want to take out money prematurely, you’ll pay a certain percentage in fees.
Should You Get a Fixed Index Annuity?
If you’re interested in setting up a steady retirement fund with minimal risk, fixed index annuities are a great option. With inflation protection and tax-deferred growth to compound a low loss limit, these investments are excellent for anyone seeking to secure their future.
Keep in mind, however, that fixed index annuities rates can be high. Between high fees and uncertain earnings, if you don’t have the money to spare, a standard annuity might be better suited for you.
Schedule a Consultation Today
For all of your financial needs, including fixed index annuities, you can trust Sun Cities Financial Group. We provide exceptional one-on-one service to guide you through your investment journey, empowering you to make the right decisions based on your future goals. As an A+ rated company by the BBB, we take our jobs and your needs seriously. For the best fixed index annuities guidance, contact us today.