Why Consider A Fixed Annuity?

ney, particularly with an eye on retirement, one of the best decisions you can make is purchasing a fixed income annuity. A fixed index annuity (FIA) is a type of annuity that provides a minimum guaranteed interest rate over a set number of years. Additionally, the person who owns the FIA may receive further interest credit depending on the percentage of change in the broad market index.

Purchasing an FIA offers several benefits and is one of the safest investment decisions you could make.

Resistant to the Market

The problem with other types of investments that you could choose is that their value will be tied directly to the health of the market. Consequently, if the market plunges, so will the value of your stocks, causing you to lose a tremendous amount of money, putting your future finances at risk.

In contrast, a fixed index annuity is not negatively impacted by the fluctuations of the market. While you may receive additional interest if the index strengthens, you will never lose money if the index takes a downturn since the annuity is fixed. This means you can purchase an FIA without risk.

Add a Guaranteed Income Rider

One of the main reasons that people invest their money is so that they will be able to retire comfortably. In this regard, there is almost no better option than a fixed index annuity, particularly if you add a guaranteed income rider.