Prevent Market Loss
Fixed and fixed indexed annuities are powerful tools to protect your retirement from market loss while ensuring reliable income. They offer peace of mind, especially during volatile economic times, by blending security with growth potential.
A fixed annuity is a contract with an insurance company that guarantees a set interest rate over a specific period. Your principal is protected, and your returns are predictable, making it ideal for conservative investors or retirees seeking stability. You can fund a fixed annuity with a lump sum or a series of payments, and the growth is tax-deferred until withdrawal. At the end of the accumulation phase, you can choose to receive regular income payments for a set period or even for the rest of your life.
A fixed indexed annuity (FIA) offers a blend of security and growth potential. Like a fixed annuity, your principal is protected, but your earnings are tied to the performance of a market index, such as the S&P 500. You benefit from market gains up to a cap or participation rate, but if the market declines, your account doesn’t lose value. It simply earns zero for that period. This makes FIAs an attractive option for those who want some market exposure without the risk of losing their retirement savings. FIAs also offer tax-deferred growth and can include income riders that guarantee lifetime income, regardless of market conditions.
While both options offer important benefits, they come with considerations. Fixed annuities typically have limited growth potential compared to inflation or market returns. FIAs can offer higher returns, but their growth may be capped, and surrender charges may apply for early withdrawals. Both are best suited for long-term retirement strategies, especially for individuals nearing or in retirement who prioritize stability, predictable income, and protection from market downturns. When used correctly, these annuities can be a key part of a diversified and secure retirement plan.
The Annuity Deep-Dive Process
At Financial Crusaders, we go beyond simply offering annuities, we analyze existing contracts, uncover hidden fees, identify underperforming features, and explore opportunities for upgrades or replacements that better align with the your goals. Whether it’s enhancing income guarantees, improving growth potential, or increasing flexibility, our Annuity Deep-Dive Process is designed to bring clarity, efficiency, and long-term value. By leveraging our independence and broad access to top-tier annuity providers, we ensure that our clients are in the best possible position to secure a stable and confident financial future.