An annuity is a contract with an insurance company. You contribute a lump sum (or monthly payments), and in return, the annuity provides:
| Features | Fixed Annuity | Indexed Annuity |
|---|---|---|
| 🔒 Guarantee | Predictable, steady interest rate | Market-linked with a 0% floor (never negative) |
| 📈 Growth Potential | Reliable, lower returns | Upside potential, no downside risk |
| 📉 Market Risk | None | None (0% floor) |
| 💰 Liquidity | Withdrawal limits apply | Same — with optional income rider for flexibility |
| 🧾 Taxes | Tax-deferred until withdrawal | Tax-deferred until withdrawal |
✅ Safe Growth – your principal is protected
✅ Lifetime Income – paychecks that keep coming, no matter how long you live
✅ Tax-Deferred Growth – no taxes until you withdraw
✅ Optional Bonuses – some contracts offer upfront income boosts
✅ Legacy Options – leave unused value to your heirs
A: No. Indexed annuities have a 0% floor. Your principal is protected.
A: No. Most annuities allow 10% penalty-free withdrawals annually, and income riders create flexibility.
A: Not at all. Many clients in their 40s and 50s use annuities to grow money safely while protecting their future income.
A: Yes — unused value can go to your named beneficiaries.
✅ Safe Growth – your principal is protected
✅ Lifetime Income – paychecks that keep coming, no matter how long you live
✅ Tax-Deferred Growth – no taxes until you withdraw
✅ Optional Bonuses – some contracts offer upfront income boosts
✅ Legacy Options – leave unused value to your heirs
