The Many Advantages of Fixed Annuities

Article submitted by Richard Eberhardt of LLQ Consulting.
For more information, he can be reached at 239-997-9997.

Fixed annuities, also referred to as a tax-deferred fixed annuities, are contracts between you and an insurance company for a guaranteed interest bearing policy that includes optional guaranteed income choices. There are numerous advantages of fixed annuities, some of the most important are:

1. Tax Deferred: The insurance company credits interest on fixed annuities, but you don't pay taxes on the earnings until you make a withdrawal or begin receiving an income from your fixed annuities. Fixed annuities earn competitive returns that are very safe. Because fixed annuities are tax-deferred, you earn additional interest compounding on the money you'd normally be paying in taxes.

2. Competitive current interest rate: Current interest rates on fixed annuities are generally competitive with those from other fixed-interest vehicles, and are typically better than what can be obtained by investing in a comparable Bank CD. Annuities can beat Bank CD rates and offer other features and benefits that leave Stocks, Bonds and Mutual Funds in the dust.

3.Safety/guarantees: The value of your fixed annuities is fully backed by the assets of the issuing insurance company. And all fixed annuities are secondarily covered by your states Insurance Guarantee Fund. In addition, fixed annuities offer a minimum interest rate guarantee.

If you are currently retired or planning for retirement this will be the most valuable information you have received in a long time. Annuities have come to mean many things in the last few decades. Annuities are recognized today as the most outstanding retirement vehicles, providing unparalleled safety coupled with extremely competitive returns.

Want Stock Market Returns with NO Downside Risk?
The most popular fixed annuity is an Equity Index Annuity. Most, if not all Equity Index Annuities today guarantee your principal and lock in gains from previous years. During a year of growth, EIA owners participate in the gains, but not the loses. Equity-indexed annuities, are linked to a stock market index such as the Dow Jones or S&P 500 and participate in the growth of those markets without putting any principal at risk from potential down ticks in the market. Also, annuities can provide a guaranteed retirement income you cannot outlive.

Need a Retirement Income You Cannot Outlive!
As you know Americans are living longer and longer and the population of retired people in this country is about to explode thanks to aging Baby Boomers. The question for most of these seniors becomes: Will my retirement income be enough? With annuities, that question becomes manageable. Every annuity can be converted into a guaranteed income for life. And annuities can provide you with an income stream you cannot outlive. No other product can make that offer! There are many different kinds of annuities with many different options. In order to find the annuity that meets all your needs it is important to talk to a specialist in annuities.