The answer is yes! An annuity is a contract offered by an insurance company like a CD with a bank. They are becoming more popular among retiring Americans because they offer a guaranteed income and typically provide better returns than a CD. However, some annuities come with risks and some do not.
Variable Annuities give you the returns of the stock market, so they will go up and down depending on what the stock market is doing. If you are comfortable with this risk, this could be a good choice. However, if you want an annuity that is more reliable and not as risky, a Retirement Income Annuity may be a better fit. This annuity eliminates the ups and downs of the stock market. With this product, you are not affected by any market loss and are able to receive gains up to a cap. Another benefit of this type of annuity is some offer a special attachment which guarantees a compound interest growth of between 5% and 7%.
Another type of annuity is a fixed annuity which guarantees a fixed rate of interest for a specific number of years. This can be a benefit, but many fixed annuities are not generating enough growth and the owners of the annuity do not achieve the income level they need. Another type of annuity, which can generate more income is the Fixed Indexed Annuity. This provides a minimum rate of interest like the fixed annuity; however, what gives it greater earning potential is it uses a specified stock index (usually the S&P 500) to calculate returns over the minimum. This helps to generate more income, but there is a cap on the earnings between 4% and 8%. Another great feature of this product is on the contract’s anniversary date, the growth is locked in and this is the new amount that you cannot lose moving forward.
As you can see there are many types of annuities, trying to find the right one for your retirement goals can be tricky, which is why Coach Pete and his team at Capital Financial can help. They customize a plan for each of their clients based on their client’s individual goals and desires. If you would like a review of your current annuity or would just like to learn about more options, you can contact Coach Pete and his team by calling 888-919-9001, visiting their website capitalfinancialusa.com, or texting CBS17 to 21000.