A fixed annuity is a contract with a life insurance company that offers you a way to build tax-deferred value or have a guaranteed income for retirement. If you are not comfortable with market risk, a fixed annuity may be a good choice for you.
There are two types of fixed annuities
- Deferred Annuity - In a deferred annuity, your earnings grow tax-deferred until withdrawn which is a powerful tax benefit that can help your earnings grow faster than they would in a similar taxable account. This type of an annuity can provide a dependable, guaranteed source of retirement income in the future based on the accumulated value in your annuity and the income option you choose.
- Immediate Income Annuity - An immediate income annuity is purchased with a single payment, which converts principal into a steady source of income. This type of an annuity is designed for people who are seeking guaranteed income, either for lifetime or a specified period.
Talk with one of our specialists for more details on fixed annuities!