What are Fixed Annuities?
Fixed annuities provide a guaranteed minimum interest rate and are considered savings instruments. Insurance companies issue all fixed annuities. They are not government or bank obligations, so naturally they are not FDIC insured. However, fixed annuities have an extraordinary record of safety and offer other benefits.
Prior to the late 1970s annuities were primarily used as a retirement income vehicle. The textbook definition of an annuity in those days was “A periodic income for a specified length of time, for life, or a combination of the two.” Today, however, annuities can mean much more.
Main Annuity Benefits:
Learn how to generate guaranteed lifetime retirement income
Money remaining inside an annuity grows without being taxed until withdrawn. Unlike qualified retirement accounts where you must begin taking out money around age 70, most annuity contracts permit the owner to enjoy the advantage of tax deferral until age 85, 90, or even later. Tax deferred does not mean tax-free; interest is taxed when withdrawn. Also, the Treasury Department charges a 10% penalty on interest, in addition to regular taxes, if withdrawals are made before age 59.
ContactLearn about the CD Alternative...
Ragan Financial Group
7042 Kinnikinnick Dr
Roscoe, IL 61073
Mon-Sat: 8:00 AM - 5:00 PM
Need Help Making a Financial Decision?
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax, legal, or investment advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
Ragan Financial Group is not responsible for any independent decisions made from information found on this website or links provided to external websites. You need to conduct your own research and consult with a representative of Ragan Finanicial Group or your own financial professional about your personal situation before making any financial decisions.
INFORMATION CONCERNING COPYRIGHT INFRINGEMENT CLAIMS:
Ragan Finanicial Group provides links from its website to various third party sites which may enable you to obtain locations and information outside of our control. Ragan Finanicial Group neither controls nor endorses such other websites, nor have we reviewed or approved any content appearing on them. Ragan Finanicial Group does not assume any responsibility or liability for any materials available at these websites, or for the completeness, availability, accuracy, legality or decency of these sites
© COPYRIGHT SMP INTERNATIONAL LLC 2018. ALL RIGHTS RESERVED.