Annuities
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- (832) 264-5232
- Offices in TX & LA
What is an Annuity
An annuity could be a way for you to successfully fund your lifestyle in retirement. The question you probably have, though, is “What is an annuity, and how does it work?” Well, firstly, these products come in a few different types. The main ones you’re going to hear about are variable annuities, fixed annuities, and fixed indexed annuities, or FIAs. Of these, an FIA is the option really worth considering. This is the type that provides a degree of protection, but also a reasonable rate of return,** as it grows based on the performance of an index. However, none of the money contributed is actually at risk* if the index goes down in value.
The Three Main Keys to a Successful Retirement
Sometimes you’ll hear people say that annuities are bad. Why do they think this? Well, mainly, it’s because not all of these products are created equal. As we mentioned, there are a few different types, and even then, different rules for each individual annuity contract.
A variable annuity, like an FIA, has an interest rate that may increase based on the performance of the market. However, a variable annuity invests the contributed principal amount directly into stocks, putting it at more risk. We believe an FIA is the superior option. Having at least some of your money kept in places where it’s guaranteed* safe is crucial for staying financially stable in retirement.
Things Have Changed
In past years, options when it came to annuity products, and financial vehicles in general, were different… And more limited. Typically, when selecting a place to keep your money, you had to choose between one of two benefits. Some accounts offered safety and stability, while others offered high returns, allowing you to compensate for inflation, changes in the state of the economy, and unexpected expenses.
However, safety vs reasonable returns** is no longer a choice you necessarily have to make. An FIA is one example of a product that can offer you both of these benefits, and more. Reach out to us to learn more. Is a fixed indexed annuity the right option for you? We can help you find out.