Why Consider A Fixed Annuity?

Learn about the benefits of purchasing a fixed index annuity and find out why you should choose this form of investment for your retirement.

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This story is brought to you by Michael Fassi via the USA Herald Platform

If you’re interested in investing your money, 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.

When you add a guaranteed income rider to your fixed index annuity, you will be paid from your annuity every year. This is especially beneficial for seniors looking for a solution to supplement their Social Security or other retirement plans. Choosing an FIA can ensure you receive income for the rest of your life after retirement.

Low Maintenance Fees

When investing your money, you want to be certain that your investments will not be subject to a variety of fees and charges. Another benefit of choosing a fixed index annuity over other types of investments is that there are little expenses required for this type of annuity.

Generally, the only fee you will need to pay for an FIA is a surrender charge, which restricts how many withdrawals you can make from your annuity in its first year. You may also pay a small fee for any riders added to your annuity. Investing in a fixed index annuity is a great choice if you’re looking to avoid expensive maintenance fees.

Principal Protection

Perhaps the best reason to choose a fixed index annuity is that your principal will be protected. When you purchase an FIA, the insurance company will use that money to purchase both treasury and high-grade corporate bonds to create a revenue stream. The revenue stream will then be used to invest in market. Your principal, however, will never be invested in the market and is only used to create a revenue stream.

By keeping your principal protected from the market, your investment will be secure.

Choose a Fixed Index Annuity

Purchasing a fixed index annuity is a great choice for anyone looking to invest their money for retirement. An FIA can give you a steady source of income that will remain protected in the oft-volatile market.

For More Information on Annuities, Contact Fassi Financial Network via 1-800-320-3012.

Comments From Facebook

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Leo Munoz Sr.: No thanks!
Posted ON : 09/18/2017
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Lloyd Nelson: Annuities are promise from a financial firm who may go bankrupt and is based on actuary tables to make money for the seller and the odd 100 year old
Posted ON : 09/18/2017
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Robin Jones: Specifics please!  
Posted ON : 09/18/2017
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Vic Clement: Any company you invest in could go bankrupt. Just like any other investment, the purchase of a fixed indexed annuity only makes sense if it helps the investor achieve a financial goal.  
Posted ON : 09/18/2017
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Don Elliott: That is so wrong that it is funny. An annuity is a legal contract between an insurance company and a person or persons. NO INSURANCE COMPANY HAS EVER LOST ON DIME IN THE HISTORY OF THE UNITED STATES. there is nothing in an annuity about any seller or any odds. If you are going to post something please make it something you know about  
Posted ON : 09/18/2017
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Vic Clement: These could be a good bond replacement in a portfolio if planned properly.
Posted ON : 09/19/2017
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Stephen Freese: Be very careful.
Posted ON : 09/19/2017
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Steve Chambers: Why buy an annuity?
Posted ON : 09/19/2017
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Don Elliott: You get a financial contract for reasonable growth with no risk of loss. Very simple  
Posted ON : 09/19/2017
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Steve Chambers: Don Elliott Except you pay a fortune  
Posted ON : 09/19/2017
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Philip Tate: Some of these look to be pretty good !
Posted ON : 09/19/2017
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Tim Beasley: All I can say look before you leap , these are really complex
Posted ON : 09/19/2017
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Suzanne Henderson: Give away your money to an insurance co. With a 10 page contract...
Posted ON : 09/20/2017
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Mark Heath: I have many that are very good safe retirement assets.
Posted ON : 09/20/2017
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Larry Leslie: I have 2. Both came with a 7-10% bonus of the investment amount which vests over 10 years and a low annual cost. Also both provide a guaranteed income benefit rider so I'm very happy. One of them had over 10% growth in 2016/2017!!!
Posted ON : 09/20/2017
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Alan Sampson: Trust the Trump market and his insatiable desire to get Rocket Man? I have half in annuities.
Posted ON : 09/20/2017
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James Corr: Annuities are good for someone who wants a guaranteed lifetime income.
Posted ON : 09/21/2017