Fixed Annuities

There are two types of fixed annuities: traditional fixed and indexed annuities.
Traditional Fixed Annuities

Traditional fixed annuities pay interest on the funds invested at a fixed rate of interest. This rate of interest can be for the term of the annuity, for a certain number of years or change annually.

Indexed Annuities

Indexed annuities can provide the purchaser with various options for interest crediting. The buyer has the option to elect a declared rate, which would function the same as a traditional fixed annuity. However, indexed annuities are designed for higher potential interest rates, and provide other allocation options such as the S&P 500, mutual funds or other indexes to determine the rate of interest.

All indexed annuities have a floor of zero, meaning the absolute worst-case scenario due to a downturn in the market index is a consumer might receive no interest in a particular year and will not lose any previously credited interest or premiums. For example, if you purchased a $100,000 indexed annuity and it earned $10,000 in year 1 you would start year 2 with $110,000. Then lets assume the s&p 500 declined 35% in year 2. At the end of year 2 your annuity would still be worth $110,000. Even though you didn’t earn any money in year 2, your indexed annuity protected you from the market decline.

Tax-Deferred

Earnings on fixed annuities are tax-deferred and you do not pay taxes until you withdraw your money.

Income

Fixed annuities can provide guaranteed income for life or a set number of years. Lifetime income can cover you or both you and your spouse.

Legacy

Today, unlike many years ago, the vast majority of fixed annuities will distribute any remaining funds to your heirs in the event of your passing.

The “guaranteed” portion of any annuity contract is based upon the claims paying ability of the issuing insurance company.
The information in the example above is provided merely to portray hypothetical mathematical principals, and is not a guarantee of performance.

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PLEASE CALL US AT 855.755.6900 to learn more about how annuities may help you to achieve your income and investment goals.

855-755-6900

Please call us to learn more about how annuities may help you to achieve your income and investment goals.

Securities offered through Emerson Equity LLC, member FINRA / SIPC. This is not an offer to buy or an offer to sell securities. Securities investing carries an inherent risk of loss of some or all of the principal invested. We are not tax professionals. You should always discuss your investments with a tax professional prior to investing. Securities are sold only in those states where Emerson Equity LLC is registered. IRVAD Insurance Associates LLC and Emerson Equity LLC are not affiliated.