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Annuities are investment products that can offer tax-deferred savings, competitive interest rates, and a guaranteed retirement income stream you cannot outlive.

Grace Advisory Group

What You Need to know About Annuities

What are Annuities?

Annuities are investment products that can offer tax-deferred savings, competitive interest rates, and a guaranteed retirement income stream you cannot outlive. Similar to life insurance, an annuity is an agreement between an individual and a financial institution where the individual pays a premium that will, at a predetermined time, be returned back to the individual in a lump sum or as incremental payments. All money placed into an annuity is tax-deferred.

There are four basic types of annuities: fixed, immediate, variable and indexed. They all share certain traits, but each works differently and offers unique advantages. Speak with a qualified retirement professional from Grace Advisory Group to help you find the annuity that works best for your individual needs.

What Are Fixed Annuities?

Fixed annuities offer a guaranteed rate of return for a set length of time that cannot be affected by market volatility. Fixed annuities are an excellent option for conservative investors or for those who wish to protect their retirement assets from market risk. Anyone looking for a low-risk, predictable option will appreciate this investment.


What are Indexed Annuities?

Fixed indexed annuities combine upside potential with the guaranteed protection of a traditional fixed annuity. In today’s interest rate environment, many retirees are looking for ways to help grow their retirement assets and help ensure their income will last for life. Index annuities offer a potential solution. Like all fixed annuities, they can help protect your principal from market loss. Plus, they provide you with the opportunity to earn interest based on the performance of a market index, potentially increasing the value of your retirement assets.


What are Immediate Annuities?

Immediate annuities provide a low risk investment option to retirees looking for steady and immediate income payments. The investor starts receiving income almost immediately after making a lump sum contribution and entering into a contract with the insurance company. The time period to receive payments is decided by the individual and may be for life or a predetermined fixed period such as 10 to 30 years.

The amount received from the immediate annuity depends on a variety of factors such as life expectancy, lump sum money invested, and expected rate of interest on this money. The growth of the funds placed within an immediate annuity is tax-deferred, which means you don’t need to pay taxes on this increase until the money is withdrawn.


What are Variable Annuities?

Variable annuities can offer a unique combination of growth and protection opportunities not typically found in other investments. Variable annuities have evolved to meet investor’s changing needs by offering participation in the equity markets—complete with growth potential, protection against downside risk and predictability of income they can’t outlive.

The rate of interest in variable annuities is usually uncertain and the level of risk is much higher as compared to fixed annuities.


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Grace Advisory Group

Want to learn more?

Talk to one of our knowledgeable financial professionals. We will be happy to discuss your financial situation and retirement goals to determine if one of these products would be a suitable choice for you.

Call us today at 866-481-5550 to set up your appointment.



Gall Grace Advisory Group

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Fort Myers, FL 33912

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