With medical advancements and increased awareness of health basics, people are living longer and longer.
This means you may have many years ahead of you, including your years in retirement, making a predictable income that lasts as long as your retirement even more important. A fixed index annuity is one solution that makes sense for many of our clients.
Our team at The Lloyd Group, Inc. can help you learn more about fixed index annuities, and how they might fit into a plan for long-lasting retirement income.
What Are Fixed Index Annuities?
Annuities are one of many options to assure your confidence in your long-term finances. They have a few unique characteristics that differentiate them from life insurance, IRAs or securities.
Before we get into fixed index annuities, let’s talk about annuities in general. They come in four basic types: immediate, fixed, variable and fixed index. They are all a contract between a financial institution and an individual. The individual pays a premium that the institution will, at a predetermined date, return back to them with interest as a lump sum or as incremental payments. Any money placed in an annuity is tax deferred.
What separates fixed index annuities from their counterparts? Fixed index annuities are tied to a specific financial index such as the Nasdaq, S&P 500 or the Dow Jones Industrial Index. People choose this kind of annuity because of this ability to take advantage of market increases without the risk of loss — although fixed index annuities are tied to a stock market index, they don’t participate in it. This means that when the market goes up, so does the interest in a fixed index annuity, usually up to a cap. Yet, when the market drops, the fixed index annuity doesn’t lose any interest to market risk.
Call to Learn More
If you have any questions about fixed index annuities and how they might fit into your retirement income plan, call our office to schedule a one-on-one, no-obligation, complimentary appointment.
We specialize in helping clients prepare for what lies ahead, which for most people, begins with retirement. There are, however, and endless amount of financial situations people may find themselves in. Our experienced financial consultants know that everyone is different. We sit down with each client to understand their unique backgrounds and aspirations for the future.
We proudly offer the following services to our clients:
Retirement Planning Kit
This helpful retirement kit includes three separate guides that address several topics you should consider when planning your retirement.