Annuities
Protect your principle savings from market volatility.
WHAT ARE ANNUITIES?
At Simply Rooted Financial, we believe that securing your financial future is about finding reliable solutions tailored to your unique needs. One option to consider is an annuity—a long-term insurance product designed to provide you with guaranteed income.
Annuities are a popular choice for retirement planning because they offer the benefit of regular, steady payments while allowing your earnings to grow tax-deferred until withdrawal. Additionally, most annuities come with a built-in death benefit, ensuring your original investment can be passed on to your loved ones.
In today’s world, where people are living longer and experiencing more market fluctuations, annuities can help bridge the gap between other stable income sources like pensions or Social Security, providing peace of mind when it comes to covering essential expenses in retirement. Let Simply Rooted Financial guide you through understanding how annuities can fit into your overall retirement plan.
TYPES OF ANNUITIES EXPLAINED
FIXED ANNUITIES
A Fixed Index Annuity (FIA) is a type of long-term savings product that offers growth potential based on the performance of a market index, like the S&P 500, while providing protection against market downturns. Unlike traditional fixed annuities, FIAs allow your money to grow at a rate tied to the index’s performance, but your principal and credited interest are shielded from losses if the index declines. This combination of growth potential and protection makes FIAs a popular choice for individuals looking to plan for retirement with more security.
A fixed annuity is a type of insurance product that provides a guaranteed, steady rate of return on your investment over a specified period of time. With a fixed annuity, your principal investment is protected, and you receive regular, predictable payments, making it an ideal choice for those seeking financial security and stability in retirement. The earnings grow tax-deferred, meaning you don’t pay taxes on the interest until you begin withdrawing funds. This makes fixed annuities a low-risk option for conservative investors looking for a reliable income stream to help cover essential living expenses during retirement.
FIXED INDEXED ANNUITIES
