Understand the benefits
Are Fixed Index Annuities Good?
the answer is clear
Get to know your options
Are Fixed Index Annuities Good?
Well, that’s a good question. The answer is clear once you learn a few key points. First, you must understand that each person’s situation is unique. Take the time to figure out if a product is right for you. For instance, review how much you have in total assets. Do you have enough in liquid assets in case of emergency? Also, what is the total annual income you need in retirement? You’ll want to be sure that an annuity can help in providing you enough to live on. Finally, know your retirement goals. This type of annuity can protect your policy. Meanwhile, you earn a reasonable rate of return**. Does this align with your goals?
Additionally, you should try to get educated about your options. “Good” is a relative term. Are fixed index annuities good at protecting your principal*? Yes, indeed, they are. How about a reasonable rate of return**? Are fixed index annuities good at that? Yet again, yes, they are. However, if you prefer to take a higher risk with your money, an annuity may not be the answer for you. Learn about your options at one of our educational seminars.
Are Fixed Index Annuities Good For Me?
Fixed index annuities (FIA's) are essentially a contract between you and an insurance company. You agree to contribute a certain amount of money. The insurance company agrees to pay you a fixed percentage amount. More specifically, you agree to a certain time frame in which a portion of your money is accessible for withdrawls. The time frame is your choice. The longer you are willing to commit can potentially give you better features and benefits. After the time frame, the same features and benefits will continue with full access to all of your money.
Fixed Index Annuities
& The Stock Market
Remember, fixed index annuities are reliant on the stock market for accumulation, not liability, in order to accrue interest for you. Therefore, if the stock market drops, it is the insurance company (not you) who takes the hit. You get to keep your principal intact*. In addition, you still get to earn a reasonable rate of return**. Essentially, with a fixed index annuity, the interest rate remains stable, no matter what the stock matter is doing. If the stock market trends downward, your fixed index annuity remains unaffected.
Income For Life
Fixed index annuities have key benefits over many other financial vehicles. This first of these is a guaranteed lifetime income. Today, more and more retirees are living into their 90’s. In fact, with modern medicine and technology, you may even live well past 100. So, what do you do if you’re worried about outliving your money? A fixed index annuity might be an option because it generates a reliable income stream that can’t be outlived. Additionally, you have multiple options to choose from in terms of how and when to withdraw your payments. Some of these options include a guaranteed monthly check for the rest of your life.
Are Fixed Index Annuities Good
In Terms of Interest Rates
The interest rate for a fixed index annuity varies, depending on a few details. Insurance companies offer different products, each with its own distinct benefits and options. Your interest rate may vary, depending upon the product, options, and company you choose. At Messina’s Wealth Management, we work only with solid insurance companies. We look for organizations with a consistently excellent reputation. Generally, you should look for a reasonable rate of return. In most cases, they are also providing income payments for life. This low-risk arrangement may mean that you don’t see a crazy high ROI. However, it also means that you never have to worry about losing your principal*. Or, losing your income. The trade-off is more than reasonable. Keep your money safe, and maintain a reasonable rate of return**.
Looking to learn more about annuities?
Attend one of our sessions or schedule an appointment. Let’s find out if annuity income is right for you.