Before you purchase an annuity, it is best to understand the many annuity options available. For example, annuities can be deferred or immediate, variable or fixed annuities. At First National Insurance Group, our Lawrenceville, Georgia annuity experts can discuss annuities with you and answer all of your questions. Our goal is to help you decide how annuities may best meet your retirement savings goals.
First National Insurance Group can give you information on the many different annuity products available in the Lawrenceville area, including fixed annuities. Probably the most well-known type of annuity, fixed annuities is insurance contracts which are actually an investment. Your investment in a fixed annuity can be made in one lump sum or in scheduled payments. After they mature, fixed annuities offer you, as the owner of the annuity, a set amount of money back.
Fixed annuities are similar to certificates of deposit (CDs) and other investment vehicles used to accumulate wealth. However, fixed annuities have their own unique qualities that make them useful to certain types of investors. Fixed annuities are typically considered low-risk investments; however fixed annuities are not insured by the government or any other institution. Therefore, when you consider buying fixed annuities, it pays to make sure that the issuing insurance company is financially sound and highly rated.
When you purchase a fixed annuity, the insurance company guarantees that you will receive your investment, plus a minimum rate of interest, back when the fixed annuity matures. The money you have in a fixed annuity will grow either at a fixed dollar amount, fixed interest rate, or another formula specified ahead of time.
Fixed annuities are good for those investors who want to have control of when they pay taxes on their annuity earnings. In other words, you don’t have to pay taxes on the wealth you accumulate from fixed annuities until you make a withdrawal. This means your fixed annuity can grow, tax-deferred, for years.
There are a few options for how you may withdraw your money from fixed annuities. You may elect a lump sum payment at the end of the fixed annuity term, or you may prefer the lifetime income option, which will give you a steady flow of income for the rest of your life. Some fixed annuities will allow you to withdraw a portion of your money, without penalties, before the annuity matures. Or, after your fixed annuity matures, you may elect to let your fixed annuity funds accumulate for a longer period of time.
An additional benefit of fixed annuities is that, after your death, your annuity’s value can be paid directly to your named beneficiary or beneficiaries without going through probate.
Finally, many of our clients in the Lawrenceville area find fixed annuities very attractive because there is no limit to how much money you can invest in them. Conversely, there are limits to how much you are allowed to invest in a 401(k), IRA, etc. Contact us today at 770-513-2264 to learn more. For an online quote, click the button below.