Understand the Benefits

Annuities For Retirement

Understanding Fixed Indexed Annuity Benefits

When individuals prepare for retirement, they look for ways to increase and protect their income. An annuity is a potential strategy that people consider. An annuity is a type of insurance that guarantees* a fixed income in retirement. There are a number of different types of annuities for retirement. Annuities offer many benefits, so understanding them is key to helping you make a decision.

Key Benefits of a Fixed Index Annuity (FIA)

An FIA protects your principal and guarantees* you a retirement income.

Fixed indexed annuities accumulate earnings tax-deferred. Also, the interest from these retirement annuities is not taxable until you withdraw it. Therefore, by deferring taxes, you are able to accumulate compound interest.

Annuities may provide steady income throughout retirement.

You can earn interest on your contract based on an external index, but you do not actually own any stock or share of the index. This means the money in your FIA is not at risk of market losses. 

In an FIA your principal and credited interest are protected. Therefore, your earnings have the potential to grow over time.

The death benefit goes to your beneficiaries after you pass away. It is also possible to avoid probate if the death benefit is structured properly.

grandson running toward his grandprarents who are having a picnic annuities for retirement cedar rapids ia

Interest Rates and FIAs

Several factors determine FIAs index rate. Typically, insurance companies determine annuity interest rates. We work with reputable and reliable providers. In general, you want to get a reasonable return* on your money. In most cases, the policy guarantees* retirement income. As a result, you won’t lose money with this low-risk purchase. Essentially, you’ll earn a reasonable return** while your assets are preserved.

Stock Market and FIAs

FIAs are insurance products, not investments. Rather, insurers track the performance of an external index. Thus, these products earn interest even though they are not directly invested in the stock market. The insurance companies guarantee a minimum interest rate. If the stock market falls, the insurer assumes the risk, not you. Fixed interest rates remain the same regardless of market movements.

stock market visual on computer screen fixed index annuities for retirement cedar rapids ia

Learn More About How FIAs Work

When considering annuities for retirement, be sure they meet all your needs. We can explain all your options to you at Flying Eagle Financial. Please feel free to contact us for a meeting or to register for one of our retirement seminars.

Scroll to Top