What are Fixed Annuities?
Fixed annuities provide a guaranteed minimum interest rate and are considered savings instruments. Insurance companies issue all fixed annuities. They are not government or bank obligations, so naturally they are not FDIC insured. However, fixed annuities have an extraordinary record of safety and offer other benefits.
Prior to the late 1970s annuities were primarily used as a retirement income vehicle. The textbook definition of an annuity in those days was “A periodic income for a specified length of time, for life, or a combination of the two.” Today, however, annuities can mean much more.
Main Annuity Benefits:
Learn how to generate guaranteed lifetime retirement income
Money remaining inside an annuity grows without being taxed until withdrawn. Unlike qualified retirement accounts where you must begin taking out money around age 70, most annuity contracts permit the owner to enjoy the advantage of tax deferral until age 85, 90, or even later. Tax deferred does not mean tax-free; interest is taxed when withdrawn. Also, the Treasury Department charges a 10% penalty on interest, in addition to regular taxes, if withdrawals are made before age 59.
Learn about the CD Alternative...
ASK US A FINANCIAL QUESTION
Everyone’s financial situation is unique and there is NOT a one-size fits all retirement plan. Ask us questions and get real answers.
Sewell Retirement Services
3460 Cinnamon Trace
Kokomo, IN 46901
Phone: 765-457-9795 or 800-375-2042
Need Help Making a Financial Decision?
Sewell Retirement Services does not warrant anything on this website, although we hope everything is accurate. We do not provide tax, legal, accounting, or investment advice. We are not responsible for any independent decisions made from information found on this website or links provided to external websites. You need to conduct your own research and consult with a representative of Sewell Retirement Services or your own financial professional about your personal situation before making any financial decisions.
INFORMATION CONCERNING COPYRIGHT INFRINGEMENT CLAIMS:
Sewell Retirement Services provides links from its website to various third party sites which may enable you to obtain locations and information outside of our control. Sewell Retirement Services neither controls nor endorses such other websites, nor have we reviewed or approved any content appearing on them. Sewell Retirement Services does not assume any responsibility or liability for any materials available at these websites, or for the completeness, availability, accuracy, legality or decency of these sites.
© COPYRIGHT SMP INTERNATIONAL LLC 2021. ALL RIGHTS RESERVED.