A fixed index annuity is a contract between you and an insurance company that may help you reach your long-term financial goals. In exchange for your premium payment, the insurance company provides you with income, either starting immediately or at some time in the future.
Most fixed index annuities have two phases. First, there’s an accumulation phase, during which you let your money earn interest. This is followed by a distribution or payout phase, during which you receive money from your annuity. Your annuity can earn a fixed rate of interest that is guaranteed by the insurance company, or an interest rate based on the growth of an external index.
With a fixed index annuity, you defer paying taxes on your contract’s interest until you receive money from the contract. This tax deferred growth in your asset can really add up. These annuities provide for additional growth in value by sharing in stock market growth, often without market risk. Fixed index annuities vary in their benefits depending on the company offering them.
To understand which fixed index annuity may be right for you, give us a call today.
Bruce T. Yenk CFP
Robin M. Yenk
https://www.rmjfinancialgroup.com/
(Bruce) 732-705-4321
(Robin) 732-851-4065
*An indexed annuity should be considered a long term investment and may include, but is not limited to, asset fees, participation rates, caps, and surrender schedules. Credited interested is based upon a formula linked to the corresponding stock market index and may be more or less than the actual index performance. Indexed annuities do not include dividends. Withdrawals prior to age 59 1/2 may be subject to an additional 10% tax penalty. Surrender charges may apply. Guarantees are provided by the claims-paying ability of the underlying insurance company.