Annuity Basics
What are they, how do they work, and which type is right for you?
With 60% of people concerned they might outlive their retirement resources, annuities can provide the guaranteed* income that 99% of savers say would help them feel secure (BlackRock).
Let’s break down a few annuity essentials: what are they, how do they work, and which one is right for you?
Fixed Indexed Annuities
A fixed indexed annuity is a retirement planning tool that combines the safety of minimum guaranteed* returns with the potential for higher gains linked to a market index, such as the S&P 500®.
However, your money is never directly invested in the market or an index.
An FIA offers protection against market downturns, ensuring you don’t lose money when the market drops, while still allowing you to benefit from market gains.
Fixed Annuities
A fixed annuity offers a guaranteed* return on your premiums over a specified term and can provide a stable and predictable income.
Unlike a fixed indexed annuity, which ties your earnings potential to a market index, a fixed annuity gives you consistent returns at a fixed interest rate, shielding your savings from market downturns.