Annuities
Secure Your Income
What Is An Annuity?
Creating a retirement strategy can be intimidating. However, there are certain solutions that you may not be aware of that may help to simplify your retirement approach and boost your confidence. Utilizing an annuity contract in retirement can help you receive a reasonable rate of return** while also protecting* your principal and interest. This product may be able to help you stay protected, even in the event of a market downturn. So, what is an annuity?
Explore FIAs
What is a Fixed Indexed Annuity?
A fixed indexed annuity (FIA) is one form of annuity product. An FIA allows you to earn indexed interest while simultaneously keeping your money safe. This means that your interest rate will rise based on the performance of a market index. However, even if the index falls, your FIA will retain its value. Importantly, an FIA is not an investment. Even if the market crashes, the money in your annuity will remain protected.*
FIAs Vs Retirement Plan Accounts
FIAs differ from traditional retirement plan accounts such as 401(k)s and IRAs. An FIA may offer a greater level of flexibility compared to these options. For example:
Protection in the event of a market drop
No contribution limits on your FIA
Your money grows tax-deferred, meaning you won't pay taxes on it until you take it out
You could potentially "roll over" the money from your 401(k) or IRA into an FIA if it suits your needs
Tax Advantages of Annuities
Annuities and Taxes
Annuities grow tax-deferred. Unlike traditional retirement plan accounts, which charge interest, you will only pay taxes on the money in your annuity when you withdraw it. Additional tax breaks may apply. For example, if you have received a lump-sum payout from an employer-issued 401(k), you may be able to convert that money into an annuity, deferring taxes on it. If this applies to you, you might want to consider purchasing an annuity. However, for questions like these, you should always consult with a qualified tax advisor.
