Which annuity is right for you? Before you can decide, you need to understand your goals, risk tolerance, and desired payout terms. Annuities are financial products backed by insurance companies and, at Alloy Wealth, we offer insurance services and would be happy to explain your options. We’re fond of Fixed Income Annuities because they guarantee your money will never be lost or go down in value, and gains are locked-in each year. 

In addition to Fixed Indexed, there are Variable and Indexed Annuities. Each offers varying payout options, risks, and rewards. Variable annuities are based on mutual funds so returns fluctuate impacting account balances. Indexed annuities are tied to benchmark indexes. If the market does well, returns will be based on the index’s performance. They’re safer than variable annuities because the account balance can never go down, only up. 

Annuities are perfect for anyone wanting to increase their monthly income in retirement and a great addition to a balanced portfolio. No matter the annuity you choose, your money will grow tax deferred. The fee structure and administrative costs vary, but typically FIA’s have the lowest fees and Variables have the highest. That’s one more reason why we like Fixed Indexed Annuities. They offer a guaranteed income in retirement, are known for low fees, and are considered a safe money product because returns are not based on market performance. 

It's always easier to make financial decisions when you feel comfortable and not confused. Contact Alloy Wealth at 800-689-3935 to schedule an appointment. We’ll explain payout terms, interest rates, caps on returns, and answer any questions you may have about Annuities, or any of our other insurance services.