Entries by guru

Protection Benefits

A third important advantage of a fixed index annuity is the range of guarantees and optional protection benefits available. These benefits allow you to transfer risk to the insurance company issuing the fixed index annuity. These guarantees help protect your assets, your retirement income, and your beneficiaries. In exchange for the risk transfer, the benefits […]

Indexed Interest Potential

Another advantage of a fixed index annuity is the opportunity to accumulate interest based on changes in an external index. Some FIAs offer you a choice of indexes rather than just one. In addition to choosing your indexes, you can also determine what portion of your annuity’s value will be based on each index chosen. […]

Tax Deferral

A Fixed Index Annuity Offers Tax Advantages During the accumulation phase of your contract, any interest growth is tax-deferred. If you purchase your fixed index annuity with after-tax dollars, you will only pay ordinary income taxes on your earnings – not on your premium payments – when you begin withdrawing money. Tax-deferred growth, compounded over […]

Understanding the Benefits

A fixed index annuity (FIA) offers a unique combination of benefits that can help you achieve your long-term goals. No other product offers the tax deferral, indexed interest potential, and optional benefits to protect your retirement assets and income. Let’s take a closer look at the three key benefits of fixed index annuities: tax deferral, […]

Who’s Who in a Fixed Index Annuity

Insurance Company: This is the company that issues the annuity. The insurance company is responsible for backing the annuity’s guarantees. Contract Owner/Annuitant: These usually are the same person, but they can be different. The owner makes decisions about the annuity, such as who the beneficiaries are. The annuitant is the person whose life expectancy is […]

Understanding the Basics

A fixed index annuity is a contract between you and an insurance company that may help you reach your long-term financial goals. In exchange for your premium payment, the insurance company provides you income, either starting immediately or at some time in the future. How a fixed index annuity works Most fixed index annuities have […]

Time to Rethink Retirement

The financial markets often present challenging times to those trying to plan for their future. Uncertainties can make it difficult to feel good about retirement strategies. Limited availability of traditional retirement income sources, such as defined benefit pension plans, alongside increased costs of living, whether in the area of health care or simply because Americans […]