Fixed Annuities — Guaranteed rates without guesswork
Interest payments with protection
You might consider a fixed annuity if you:
Best suited for those who want security and stability.
- Want protection from market volatility. Your interest rate stays the same regardless of how the market behaves.
- Want to earn a competitive interest rate. You can potentially choose a longer annuity contract term to get higher interest payments.
- Want a guaranteed return. The insurance company guarantees your interest payment no matter what happens in the markets.
- Want tax deferral for some of your retirement savings. Then, as long as you are over age 59 ½, you only pay taxes on the interest payments you eventually receive from the annuity.
- Want a death benefit. A death benefit payment can be paid to your named beneficiaries without going through probate, the time consuming and costly process where a court organizes and distributes assets from a deceased person’s estate.
- Want income. Annuities allow you to convert the investment into an income stream at some point in the future.
If you’re someone who wants to stay away from risks in the market and you like the idea of securing a fixed, stable interest rate for a predetermined period of time, a fixed annuity may be worth considering. And as with all annuities, your premium can be turned into income payments in the future. Keep in mind the income should start at some point after age 59½. You can spend time enjoying life instead of constantly checking on your retirement savings.
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IRAs and other qualified plans already provide tax deferral like that provided by an annuity. Additional features and benefits such as contract guarantees, death benefits and the ability to receive a lifetime income are contained within the annuity for a cost. Please be sure the features and costs of the annuity are right for you when considering the purchase of an annuity.
Withdrawals are subject to income tax and withdrawals prior to age 59½ may be subject to a 10% tax penalty.
Guarantees, such as guaranteed income benefits, associated with annuities are subject to the claims-paying ability of the issuer.
Subject to state availability, not all products are available in every state.