Are you interested in buying a fixed indexed annuity? This retirement investment is often times referred to as an equity indexed annuity. No matter what you call it, you need to learn more about the benefits so that you can make an informed decision.
Why a Fixed Indexed Annuity May Be Right for You
There are many reasons why a fixed indexed annuity may be a good choice in retirement.
1. Guaranteed lifetime income. Let’s face it: many people are worried that they will run out of money in retirement. Sound familiar? With this investment, you are guaranteed an income stream for as long as you live. There are several different types of annuity payment options, so choose the one that best matches your lifestyle and financial situation.
2. Tax deferral. Did you know that your annuity accumulates value on a tax deferred basis? This is true until you begin to withdraw funds. With this benefit, your money can grow faster because you are earning interest on funds that would have otherwise been paid out in the form of tax.
3. Guaranteed principal. Mutual funds, securities, and most other investments lead to account balance fluctuations based on the market. With a fixed index annuity this is never a concern. You are guaranteed that your balance will never decrease, no matter what the market brings.
4. Stock market growth. The most unique feature of a fixed indexed annuity is the way that it is linked to the stock market without any risk for a loss. Rather than bearing the risk of the market, as you would with a mutual fund, for example, you are safe from any loss of principal – no matter how bad things get.
Are you interested in a safe way to invest your money, while receiving a guaranteed income? If so, a fixed indexed annuity may be the best option for you.