Want Us To Contact You?

Fixed Indexed Annuities

Fixed Indexed Annuities

Securing Your Future by Investing

Annuities can be a great way to build wealth. But there are risks you need to be aware of. We will help you understand the different types of annuities and we will tell you which ones might work best for you.


What are the risks involved?

If you want to make sure you get the best rate on an annuity, it helps to understand what it’s made of. Annuities are a type of insurance that offers you protection against a decline in your health or wealth. It’s a main way of turning a pot of cash into an income stream. In very simple terms, they’re like life insurance policies. You pay them a lump sum up front, and then they pay you regularly until you die.

There are two key types of risks associated with an annuity: The first is the risk that you die early and, thus, don’t receive the entire amount you paid upfront.

The second risk only applies to some forms of annuities because they are mortality-linked. You can buy annuities that pay a fixed amount, often based on factors such as your age, gender, and health status when you buy the annuity.

You can also get variable annuities in which the insurance company invests the money, so you’re getting a return based on the performance of the investments. As a solution to the risk of inflation, you can opt for the middle ground of an index-linked annuity.

Fixed Indexed Annuities

A fixed indexed annuity is a tax-deferred, long-term savings option that allows you to benefit from compounded growth because the original deposit will not decline even if the index performs negatively.

With Fixed Indexed Annuities, you can pass assets to your beneficiaries and avoid costly probate. You can add optional riders to increase the amount your beneficiaries may receive.

You might need to pay for a rider for an additional fee if you’re worried about how long you and your spouse will live. Otherwise, get lifetime income at no additional cost.

Most companies offer spousal continuation only upon the first spouse’s death and do not pay a death benefit until the second spouse passes. However, some carriers do offer a joint option that may cover the death of either spouse upon the first passing.

Your Fixed Indexed Annuity growth potential can be achieved through the performance of the index or through a fixed interest rate earned on the fixed account — or a combination of the two. We, at Tanya Garza Insurance Advisors, can help you find the best combination for you.

Is This the Right Investment for You?

Whether annuities are right for you and what level of risk is appropriate will depend on your financial circumstances. You’ll also need to carefully consider the tax implications, particularly if you want to retire early. Contact us today to discuss your options.