Guarantees are subject to the claims-paying ability of the issuing insurance company
Consider Fixed & Indexed Annuities
Tax-deferred annuities have long been viewed as a key consideration in a balanced retirement portfolio. For seniors or those approaching retirement, fixed-income annuities, in particular, merit serious consideration.
A fixed-income annuity is a retirement income product that provides you, or you and your spouse, with a reliable, guaranteed income stream for life or for a set period of time, subject to the claims-paying ability of the issuing insurance company. Taxes on annuity gains are deferred until you start withdrawing assets in retirement, at which time you may benefit from a lower tax bracket.In reviewing the types of annuities that might work well for you, we’ll also explore the merits of equity-indexed annuities (EIAs), which offer market potential without risk to principal or earned interest. EIAs are a hybrid investment-and-insurance product that promises investors a piece of any stock market gains while limiting downside risks when the market falls. They earn interest linked to a stock or other equity index such as the Standard & Poor’s 500 Composite Stock Price Index (S&P 500). By employing hedging strategies, insurers offering EIAs limit both the upside potential and downside risks for investors.