Types of Annuities

• Fixed Annuities: These annuities offer a fixed interest rate for a specific term or period. The principal is protected, and you receive a guaranteed income stream. Fixed annuities are generally low-risk and can provide stable retirement income.

• Indexed Annuities: Indexed annuities provide returns based on the performance of a market index, such as the S&P 500. They offer the potential for higher returns than fixed annuities while also ensuring a level of protection against market downturns. Indexed annuities often come with a minimum guaranteed interest rate.

• Immediate Annuities: Immediate annuities start providing income payments right after you purchase them, typically within 30 days. They are suitable for individuals looking for immediate income in retirement. You can choose between fixed payouts or variable payments based on the performance of underlying investments.

• Deferred Annuities: Deferred annuities accumulate funds over a specific period before starting to provide income. They allow you to grow your investment tax-deferred until you are ready to start receiving payments. Deferred annuities are suitable for individuals who are planning for retirement in the future.

The benefits of each type of annuity can vary based on your individual needs and goals. Fixed annuities offer stability, guaranteed income, and principal protection. Indexed annuities provide a balance between growth potential and downside protection. Immediate annuities offer immediate income, while deferred annuities provide tax-deferred growth.

It’s important to consider your financial goals, risk tolerance, and retirement planning strategy when choosing the right annuity for you.