The biggest part of retirement income planning is making your money work for you. When you are no longer working, a steady stream of income can make all the difference in living the retirement you imagine. While there are many vehicles for growing your saved income, annuities are a solid option for achieving your retirement goals. At Blue Waters Financial Group, we specialize in fixed annuities that gain interest, protect against market instability, and provide a steady stream of income through retirement.

Blue Waters Financial Group is your resource for expert advice on retirement income planning, insurance products and annuities. Let’s discuss your financial future and the possible role of these products in your financial strategy. To schedule your no-obligation meeting, just click on our contact page or call us today at 704-790-2583 (BLUE).

What Is a Fixed Annuity? 

A fixed annuity is a type of insurance contract that promises to pay the buyer a specific, guaranteed interest rate on their contributions (premiums) to the account. The earnings in a fixed annuity are tax deferred until the owner begins receiving income from the annuity.

Before electing payouts, the account gains interest tax deferred. When the owner begins receiving income from the annuity, the insurance company calculates payments based on the amount of money in the account, age, and the length of time payments will continue. This payout phase may continue for a specified number of years or for life. Distributions are taxed on the interest gained using an “exclusion ratio” that excludes premiums from the taxable income.

There are Many Benefits to Fixed Annuities

Predictable Returns 

Rates on fixed annuities are derived from the yield that life insurance companies generate from its investments. The insurance company must pay the rate it has outlined in the annuity contract. 

Guaranteed Minimum Rates 

Fixed annuity contracts typically include a minimum rate guarantee as protections against falling interest rates.

Interest is Tax Deferred

Fixed annuities are tax qualified. Earnings grow and compound tax deferred and investors are taxed when they begin taking payments from the account. This makes a large impact on how the account can grow over time.

Guaranteed Income 

Fixed annuities begin paying at a time the owner selects. This provides guaranteed income payout for a specified period or for the life of the owner of the annuity.

Your Investment is Safe

Although annuities are not federally insured, the life insurance company is responsible for protecting premiums paid into the annuity and for meeting the obligations of the contract. 

There are fees associated with fixed annuities, so it is important to work with a reputable company and compare options. Working with an expert to find a fixed annuity to meet your needs should be an integral part of your retirement plan.

Blue Waters Financial Group specializes in retirement income planning, insurance products and annuities. Let’s discuss your financial future and the possible role of these products in your financial strategy. To schedule your no-obligation meeting, just click on our contact page or call us today at 704-790-2583 (BLUE).