Understand The Benefits

close up of person typing on laptop with overlay of stocks annuities for retirement

Benefits of Annuities For Retirement

An annuity is a contract with an insurance company that allows you to receive payments on a set schedule. Typically, this agreement allows you to receive payments for the rest of your life. An annuity might offer you with monthly, quarterly, or annual payments. Of course, individual details vary by contract. Furthermore, there are different types of annuities.

Fixed annuities and fixed indexed annuities (FIAs) do not lose money when the market declines. However, a variable annuity may lose money if the market falls. Because one of our key values is the protectional of principal, we believe you should choose a product that provides protection. Additionally, we believe you should look for a reasonable rate of return.** An FIA can provide you with both of these benefits.

Interested in learning more?

Fixed Indexed Annuities For Retirement

An FIA provides the benefit of keeping your money safe. This is because it does not invest your money in the stock market. However, an FIA's interest rate is determined by the performance of a market index. This is not the same as having your money directly invested: if the market rises, you may receive higher returns. However, if the market is down, you will not lose any money, guaranteed.* The insurance company sets your money aside in reserve to protect it. The contract and the strength of the insurance company will protect you.

Stages of an Annuity

There are two main stages to an annuity contract: The accumulation stage and the distribution stage. These are important in understanding how annuities for retirement work:

Interested in learning more? Reach out to us. Annuities are one of the things we discuss at our educational seminar events. Or, if you want to cut straight to the chase, you can schedule a one-on-one meeting with us. This way, we can discuss your situation and determine whether or not an FIA is the right choice for you.

Scroll to Top