ANNUITIES

Understand the Benefits

Understanding the Benefits of FIA’s

You may be searching for methods to protect and grow your savings since fewer employers offer retirement strategies. Indexed fixed annuities (FIA) can be part of a longer-term strategy that helps you earn guaranteed* retirement income. 

Benefits of a Fixed Index Annuity (FIA)

Owners of fixed index annuities can benefit from these contracts in a variety of ways. The advantages of an FIA help you protect and earn a guaranteed* retirement income. 

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Grow Tax-Deferred

In fixed indexed annuities, earnings accrue tax-deferred. You don’t pay taxes on annuity interest until you withdraw it. In this way, your interest will compound, increasing the amount you have accumulated.

Indexed Interest

The interest you earn on your contract is based on an external index, but you are not actually buying any stocks or shares of the index. Thus, the money in your FIA isn’t at risk of market losses.

grandparents walking hand in hand with their grandkids guaranteed retirement income

Annuities are intended to provide a reliable stream of retirement income throughout retirement.

FIAs are financial instruments that offer the option to earn interest based on the performance of an external index.

Your family receives a death benefit if you pass away before you begin taking annuity payments. (Also, a properly structured death benefit can avoid probate.)

What Is A Good Interest Rate For FIAs?

An FIA’s index rate depends on a few factors. Insurance companies often determine the annuity’s interest rate. Your insurance company guarantees your earnings. We only work with reputable and reliable insurance providers. As a general rule, you should strive for a reasonable rate of return.** In many cases, they provide guaranteed* retirement income. Although it is a low-risk purchase, you will not lose any money doing it. Maintaining a reasonable return on your hard-earned money while keeping your assets secure is possible. Contact us to calculate your guaranteed* rate of return.

The Stock Market And Fixed Index Annuities

Annuities are insurance products, not investment vehicles. Insurers will instead use an “index”. In spite of the fact that these products are not directly invested in the stock market, they earn interest based on an external index. The insurance companies guarantee a minimum interest rate. If the stock market falls, it is the insurance company that assumes the risk, not you. In an FIA, the interest rate remains unchanged regardless of the stock market. In case of a stock market decline, your FIA remains intact.

Explore Your Fixed Indexed Annuity Choices

Choose an annuity that meets all your needs for retirement. Our professionals can guide you in choosing the right option for your needs. Hybrid Financial is ready to help you. We look forward to hearing from you.

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