Foundation for Financial Stability
Fixed Annuities
Fixed annuities stand as a cornerstone of reliable retirement planning, offering a blend of guaranteed growth and predictable income. At PWYB, we understand the value of financial certainty in an ever-changing economic landscape. Fixed annuities provide a stable platform for building your retirement nest egg, ensuring a steady income stream when you need it most.
How Fixed Annuities Work
Fixed annuities operate on a straightforward principle:
Tax-Deferred Growth
Your earnings grow tax-free until withdrawal.
Principal Protection
Your initial investment is safeguarded against market fluctuations.
Death Benefit
Typically includes provisions for beneficiaries.
Payout Options
Choose between a lump sum or a series of payments (annuitization).
Guaranteed Rate
You’re promised a fixed interest rate for a specified term.
Benefits of Fixed Annuities
A simple product that is easy to understand.
Predictable Returns
Know exactly how your money will grow over time.
Principal Safety
Your investment is protected from market downturns.
Tax Advantages
Defer taxes on earnings until withdrawal.
Guaranteed Income
Option for lifetime income payments.
Ideal Candidates for Fixed Annuities
Fixed annuities can be particularly beneficial for:
- Conservative investors prioritizing capital preservation
- Pre-retirees looking to lock in guaranteed income for retirement
- Individuals seeking to diversify their retirement portfolio with a low-risk option
- Those nearing retirement who want to secure a portion of their savings against market volatility
Comparing Fixed Annuities to Other Options
vs. Indexed Annuities
More predictable returns but potentially lower growth
vs. Variable Annuities
Lower risk and fees, but limited growth potential
vs. Certificates of Deposit (CDs)
Often higher rates and tax advantages, but less liquidity
The PWYB Approach
At PWYB, we employ a thorough, client-focused strategy for fixed annuities:
- In-Depth Financial Analysis: We assess your current financial status, retirement goals, and risk tolerance.
- Rate Comparison: We leverage our industry relationships to find the most competitive fixed annuity rates.
- Clear Communication: We ensure you fully understand the terms, benefits, and any restrictions of the fixed annuity.
- Strategic Integration: We show you how a fixed annuity can complement your overall retirement strategy.
- Ongoing Support: We provide regular reviews to ensure your fixed annuity continues to meet your evolving needs.
Frequently Asked Questions
Rates are set by the insurance company based on current interest rates and their own financial goals.
Most fixed annuities allow limited withdrawals, typically 10% of the contract value annually, without penalties.
Most fixed annuities include a death benefit that passes to your named beneficiaries.
Earnings grow tax-deferred. Upon withdrawal, gains are taxed as ordinary income.
