A Fixed Annuity offers a powerful solution for steady, tax-deferred growth with the security of a guaranteed interest rate—all without stock market risk.
In fact, no retiree should have to worry about losing money in market downturns. This type of insurance contract provides principal protection and predictable returns, ultimately giving you financial confidence for the future.
Many people enter retirement with uncertainty about their financial future primarily because of:
The stock market can be unpredictable, which makes it hard to depend on investments.
Meanwhile traditional savings accounts and CDs offer rates that may not keep up with inflation.
Furthermore, many investments require annual taxes on earnings, slowing overall growth.
A Safe and Predictable Retirement Strategy
This insurance contract is designed to protect your principal while providing a guaranteed interest rate for a set period.
Earn a fixed rate for a specific term (e.g., 3, 5, 7, or 10 years).
Your money is safe, even when the stock market fluctuates.
Unlike taxable investments, your interest accumulates tax-free until withdrawal which allows it to compound faster.
Additionally, you can choose to receive income payments or withdraw funds at the end of the term.
These financial products come in 3, 5, 7, or 10-year terms with guaranteed rates.
Your money grows at a predictable
rate with no market risk.
At the end of the term, you can withdraw your funds, renew your contract, or convert it into an income stream.
If you rely on low-yield savings accounts or volatile investments, you may face:
As you know, traditional savings accounts may not keep pace with inflation.
Stocks and mutual funds can be unpredictable, putting your principal at risk.
Many investments require you to pay taxes on gains every year.
By choosing a Fixed Annuity, you can enjoy:
While both offer safety, a fixed annuity provides tax-deferred growth, while interest earned in a Certificate of Deposit (CD) is typically taxed annually. This tax treatment is defined by federal tax law, and you can find more information on how investment income is taxed directly from the IRS website.
No, your principal is protected as long as you follow the contract terms. However, early withdrawals may be subject to surrender charges and IRS penalties if taken before age 59½. Remember, your principal is protected by the financial security of the carrier issuing the policy, so make sure you choose a highly rated carrier.
Earnings grow tax-deferred, and you pay ordinary income tax on withdrawals. If you take money out before age 59½, a 10% IRS penalty may apply. [Be sure to consult a qualified tax expert].
Fixed Annuities generally do not have upfront fees, but there may be surrender charges for early withdrawals. Some annuities also offer optional riders for income or long-term care benefits that may have additional costs.
Find out how a Fixed Annuity can enhance your
retirement strategy.
© Years of Copyright Publication 2015–2025 All rights reserved. Subject to the provisions of this notice, articles, materials and content published on this site (Annuity.com) are the property of Annuity.com, Inc. Annuity.com, Inc. allows the use of their content but reserves the right to withdraw permission at any time. Content includes articles, marketing materials, agent information used as content on all pages. Content used by Annuity.com as information for the public, enhancement of any agents reputation and lead generation for all sources is copyrighted.
