Understanding Fixed Annuities: A Secure Investment Option

Planning for a stable financial future can feel overwhelming, especially when you’re looking for a low-risk option to grow your savings. Fixed annuities are a practical investment vehicle designed to provide security, steady growth, and peace of mind for those seeking financial stability.

So, what is a fixed annuity? Simply put, it’s a contract between you and an insurance company. You invest a sum of money, and in return, the insurer guarantees a fixed interest rate on your investment over a specified period. At the end of the term, you can opt to roll it into a new annuity or you can begin receiving regular payments, ensuring a steady stream of income during retirement.

One of the biggest advantages of fixed annuities is their tax-deferred growth. This means you won’t pay taxes on the interest your investment earns until you withdraw the funds. By deferring taxes, your money has the potential to grow faster, making fixed annuities an attractive option for individuals looking to maximize their savings.

Another key benefit is protecting your Social Security benefits from additional taxation. Because the income from fixed annuities is deferred, it won’t immediately count toward your taxable income, potentially helping you avoid higher tax brackets or unnecessary taxes on your Social Security payments.

Fixed annuities are also appealing because they’re a low-risk investment. Unlike stocks or mutual funds, fixed annuities provide a guaranteed return, making them a great option for risk-averse individuals or those nearing retirement who want to preserve their principal.

Whether you’re looking to supplement your retirement income, plan for long-term savings, or reduce your immediate tax burden, fixed annuities offer a reliable and straightforward solution. Speak with one of our agents today to learn how a fixed annuity can help you achieve your financial goals and provide the security you deserve. Let’s build your future, one safe step at a time.

Disclaimer

This article is for informational purposes only and is not intended to stand alone as insurance or legal advice. Individual circumstances may vary, so when in doubt, contact Partridge-Zschau directly to discuss your specific needs.