IIf you’re asking, “what is an annuity?”, you are looking for a way to add security and predictability to your financial future. This powerful insurance contract is designed to do exactly that: protect your hard-earned savings and turn them into a guaranteed income stream for life.* Lets help you learn how you can use this financial tool to build a solid foundation for your retirement.
“Protect your savings, grow your money, and create predictable income for life with an annuity.”
*All guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company.
A Smart, Safe Way to Secure Your Retirement
So, is the primary role or an annuity? It’s a vehicle to provide financial security and peace of mind. The core benefits that an annuity can offer include:
This is the key benefit of an annuity. You can receive a predictable paycheck for as long as you live, ensuring you never outlive your income.
Fixed and fixed indexed annuities are designed to protect 100% of your principal from market loss. Even if the market goes down, your principal remains safe.
Your earnings compound on a tax-deferred basis. This allows your money to grow faster than it would in a taxable account. You only pay taxes when you make a withdrawal.
You can learn more about the tax rules for annuities directly from the IRS website.
Different annuities are designed for different financial goals. The table below breaks down the most common types to help you understand your options.
MYGA (Multi-Year Guaranteed Annuity)
You want a safe, predictable return similar to a CD, but from an insurance product.
Fixed guaranteed rate for 3-10 years, backed by the insurer
3, 5, 7, 10 years
(Learn More)
Fixed Annuity
You want stable growth with guaranteed interest rates.
Steady, tax-deferred growth with principal protection.*
5-10 years
(Learn More)
Fixed Indexed Annuity (FIA)
You want growth potential with no market risk to your principal.
Gains are linked to a market index, but your principal is protected from losses.” Returns may be limited by caps or participation rates.
5-15 years
(Learn More)
SPIA (Single Premium Immediate Annuity)
You need immediate guaranteed income.
Converts your savings into guaranteed lifetime payments that start right away.
Lifetime or Period Certain
(Learn More)
DIA (Deferred Income Annuity)
You want to lock in a future guaranteed income stream.*
Secure a high level of future income now, payouts begin years later
Lifetime or Period Certain
(Learn More)
QLAC (Qualified Longevity Annuity Contract)
You want to defer Required Minimum Distributions (RMDs) and guarantee income later in life.*
Defer taxes on qualified funds and guarantee future income stream.
Payouts start at age 80-85
(Learn More)
Choosing the best annuity means matching a product to your specific needs. The answer to “what is an annuity going to do for me?” is found here:
A MYGA (Multi-Year Guaranteed Annuity) provides a predictable, guaranteed return.*
A Fixed Annuity offers stable growth and principal protection.*
A Fixed Indexed Annuity (FIA) is designed for this purpose.*
A Single Premium Immediate Annuity (SPIA) can turn your savings into a guaranteed lifelong paycheck,* starting immediately.
A Deferred Income Annuity (DIA) or QLAC lets you lock in that security today.
Find the right annuity for your retirement.
*All guarantees, including principal protection and guaranteed income payments, are backed by and subject to the claims-paying ability and financial strength of the issuing insurance company. They are not FDIC insured.
¹Annuities are insurance products and are not insured by the FDIC, NCUA, or any other federal government agency. They are not a deposit of or guaranteed by a bank or a savings association.
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