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What is a Fixed Annuity?

Fixed annuities allow you to "lock in" a certain interest rate specified period of time, anywhere from three months to as long as ten years. These rates can be as much as 1% to 2% higher than other fixed products. In addition, the insurance company gives you a 100% guarantee* that you will not lose your principal or interest as long as all product guidelines are met.

One of the most compelling features of a fixed annuity is the ability to have your investment compound tax-deferred, which means that you do not pay taxes on your interest until it is you make a withdrawal. That means you end up earning interest three ways.

Your principal earns interest. Your interest earns interest. Additionally, all of the money that you would have paid to the IRS stays in your account to earn interest for you as well. This tax-deferred compounding is what makes annuities such an attractive way to grow your funds... before and during retirement.

* Principal and interest guarantees are based on the claims paying ability of the individual insurance company.

Key Benefits

  • Tax-deferred accumulation
  • Tax deferred compound earnings
  • You control when you want to pay taxes
  • 100% guarantee of principal and interest
  • Competitive interest rates
  • Can be structured to avoid probate