Fixed Annuities
Fixed Annuities are a type of financial investment much like a CD, except that they are issued by insurance companies. Guaranteed payments are made after an initial lump sum is invested. Fixed annuities offer guaranteed growth, with rates often higher than bank CD's. Often part of a financial strategy for retirees, fixed annuities give a predictable income stream that can supplement other sources of retirement income, and have multiple pay-out options, including a lifetime income. The investment earnings are tax-deferred, and the insurance company, rather than the insured, takes on the investment risk. Many people find fixed annuities attractive because the investment minimums are lower than other types of investments, however there are drawbacks as well. If you choose to withdraw your money early there are heavy penalties which will cut into your returns, and if you choose a lifetime pay-out, the payments will not keep up with the pace of inflation.
Schoen Insurance Agency can help you make the decision on whether a fixed annuity is right for you!
Contact an insurance agent at Schoen Insurance Agency today to answer any questions about Fixed Annuities or for a free review and insurance quote for Fixed Annuities.