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Fixed Annuity

Make sure you have the right retirement plan for your peace of mind

North Carolina Annuity

What Is A Fixed Annuity

A fixed annuity is a contract where the insurance company guarantees a fixed rate of return on the invested principal for a specified period. During this time, the annuitant receives regular payments, which can be immediate or deferred to a later date.

Fixed annuities provide a stable and predictable source of income, making them popular choices for individuals seeking financial security, especially during retirement. The fixed rate of return shields the annuitant from market fluctuations, offering a level of stability and peace of mind.

Fixed annuities are known for their simplicity and reliability, making them suitable for conservative investors or those with a low tolerance for risk.

The benefits of a Fixed Annuity

  • Guaranteed Interest Rate: They offer a guaranteed interest rate on the invested principal, providing stability and predictability in returns.
  • Principal Protection: The principal amount invested in the annuity is protected from market downturns, ensuring that it won’t decrease due to poor market performance.
  • Steady Income: They provide a steady stream of income over a specified period or for life, offering financial security, particularly during retirement.
  • Tax-Deferred Growth: Earnings within the annuity grow tax-deferred until withdrawals are made, potentially reducing current tax obligations and allowing for greater accumulation of funds.
  • Flexible Payout Options: They typically offer flexible payout options, allowing annuitants to choose between receiving income immediately or deferring payments to a later date.
  • Lifetime Income Options: Some fixed annuities offer the option for lifetime income, ensuring that the annuitant receives payments for as long as they live, providing longevity protection.
  • No Contribution Limits: Unlike retirement accounts like IRAs or 401(k)s, fixed annuities have no contribution limits, allowing individuals to invest larger sums for retirement savings.
  • Simple and Easy to Understand: Fixed annuities are straightforward financial products, making them accessible to individuals who prefer simplicity in their investment strategy.
  • Creditor Protection: In some jurisdictions, fixed annuities offer protection from creditors, safeguarding the annuitant’s assets from legal claims or judgments.
  • Legacy Planning: These annuities can be structured to provide for beneficiaries, allowing the annuitant to leave a financial legacy for loved ones after their passing.

We are always here to help with your planning and questions…
Talk to one of our annuity consultants today at 336-346-1440 or contact us here

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