What Are the Benefits of a Fixed Annuity?
FIXED ANNUITY: Provides a fixed rate of return based on the terms of your contract. The annuity owner will receive a fixed income in retirement.
VARIABLE ANNUITY: Provides investment options, such as mutual funds. But the payout amount will change with the performance of the investments. The U.S. Securities and Exchange Commission regulates variable annuities. GPAgency does not offer variable annuities.
Excellent videos for a better understanding of annuities:
AIG “Cut the Small Talk” (FA & IA)
AIG “ Cut the Small Talk” (Index Annuities)
Lincoln Financial Group – FIA Basics
Lincoln Financial Group – LINC Edge
Lincoln Financial Group – Lincoln OptiBlend® Fixed Indexed Annuity
Why do people buy annuities?
People typically buy annuities to help manage their income in retirement. Annuities provide three things:
- Periodic payments for a specific amount of time. This may be for the rest of your life, or the life of your spouse or another person.
- Death benefits. If you die before you start receiving payments, the person you name as your beneficiary receives a specific payment.
- Tax-deferred growth. You pay no taxes on the income and investment gains from your annuity until you withdraw the money.
Investor.gov/ U.S. Securities and Exchange Commission