Annuities
Fixed Indexed Annuity
Fixed Indexed Annuity (FIA)
An annuity is a financial product offered by insurance companies, often used to create income or add a layer of protection in retirement.
A Fixed Indexed Annuity (FIA) is a type of annuity designed to protect your principal from market losses while offering the potential for growth. Your earnings are linked to the performance of a market index—so when the market rises, your annuity may earn interest. And when the market declines, your principal remains protected.
This balance of security and growth potential makes FIAs a strong option for those who want more stability without giving up the opportunity to grow their retirement savings.
Could an Annuity For Retirement Be Right For You?
Here at Aligned Partners Retirement Solutions we believe forming a long-term relationship with our clients. To that end, we focus on educating retirees about their retirement choices. For example, some retirees don’t know that an annuity, such as an FIA, may offer a reasonable rate of return.** Additionally, the initial money that you put into an FIA is kept protected in a reserve. So, when the market is down, you won’t lose money. Essentially, an FIA may serve an important purpose in your overall retirement strategy: Protection. But, it may be only one piece of the puzzle.
To learn more, contact us to reserve a spot at one of our educational seminars, or schedule a one-on-one meeting with us.
Potential Rates of Return
Potential rates of return are possible with an FIA. Basically, an FIA is a contract between you and an insurance company. Of course, there are certain terms and conditions of this agreement. But, one of the terms may include the possibility of earning interest on your money. As the owner of the FIA, your money typically stays in the account. However, after a certain number of years, you may have the option to take money out.
FIAs and the Stock Market
FIAs offer certain benefits over fixed annuities or variable annuities. First, an FIA protects the money you put in it from loss. In this way, it differs from a variable annuity, which invests directly in the stock market. However, an FIA does have the potential for an increase in interest when the stock market is up, as it’s linked to an external index.
Best Annuity For Retirement Income
First, with an FIA, it may be possible to generate an income for life. Stock-based retirement accounts cannot make this promise. Specifically, if the stock market goes down, the money in your retirement account may go down, tool. These is no protection for the money that you have in those investments.
Many retirees are living past the age of 100. Do you have enough money to last?
More About Interest Rate
The interest rate you get from your annuity depends upon a few things. First, each annuity product has certain terms. The interest rate may change based on these. Additionally, there are certain benefits you can select for your specific annuity contract.
At Aligned Partners Retirement Solutions, we work with trusted and reliable insurance companies. Typically, these companies must have a strong business model in order to issue a quality agreement. Overall, we’d recommend that you consider a fixed indexed annuity for retirement.
Keep in mind, your money is protected by the insurance company, you can potentially secure guaranteed* income for life, and you’ll receive reasonable rates of return.**
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