Fixed Indexed Annuities in Chattanooga, TN

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 which ones might work best for you.

Annuities are a type of insurance that offers protection against a decline in your health or wealth. They are a main way of turning a pot of cash into an income stream: you pay a lump sum up front, and then you receive regular payments. You can buy annuities that pay a fixed amount, often based on factors such as your age, gender, and health status, or variable annuities where the insurer invests the money so your return tracks the investments.

What makes a fixed indexed annuity different

A fixed indexed annuity is a tax-deferred, long-term savings option that lets you benefit from compounded growth, because your original deposit will not decline even if the index performs negatively. Growth potential can come through the performance of the index, through a fixed interest rate on the fixed account, or a combination of the two.

With fixed indexed annuities, you can pass assets to your beneficiaries and avoid costly probate, and you can add optional riders to increase the amount your beneficiaries may receive. Some carriers offer a joint option that may cover the death of either spouse upon the first passing.

Whether annuities are right for you, and what level of risk is appropriate, depends on your financial circumstances and the tax implications. Contact us today to discuss your options and find the best combination for you.