What is an annuity?
An annuity is a contract between you and an insurance company that allows your earnings to grow tax-deferred. Annuities are a popular choice for investors who want a steady income stream in retirement. Your income can be paid monthly, quarterly, annually, or even as a lump sum payment. If you defer the income, your money will grow tax-deferred based on the rate.
What can an annuity do for me?
Growth potential - A fixed index annuity has the potential for higher earnings than a traditional fixed annuity with a guaranteed minimum rate. There’s also no direct downside market risk to your money. Your principal is protected from market fluctuations.
Peace of Mind - An annuity can help you save money on a tax-deferred basis and guarantee you’ll receive income for life. So, no matter how long you live, you won’t outlive your retirement income.
Fill in the gaps - Pensions, IRAs, and Social Security sometimes don’t provide enough income to live the way you want during retirement. A fixed index annuity can help supplement your retirement income.