After you retire, there will be dozens of ways for you to invest your savings. One of which is by putting it into a fixed annuity. What exactly is a fixed annuity? Fixed annuities are easy to understand and are the most secure way to earn money back later in life. Put simply, a fixed annuity is a way to lock in a rate of earning over a long period of time after you retire that remains unaffected by shifts in the market. This is an investing account that grow at a faster rate than typical savings accounts.
There are many benefits to a fixed annuity like tax deferral, which allows you to benefit from compounded growth, principal and interest protection, which keeps your money growing at a set interest rate, and the flexibility to choose from different payout options for a specified time frame or a lifetime stream of income. A possible downside to fixed annuities is that they don’t adjust for inflation, which could mean your money is not going as far as it could. Another downside is that your interest rate is still subject to change depending on your contract. Different providers offer different rules and different ways to save, so it’s important to read up on their restrictions and charges for their annuities.
Don’t outlive your savings. Instead, join a fixed annuity and worry less about your post-retirement finances. Avoid the stress in dealing with stock market returns and take the more conservative route with your savings. To learn more about fixed annuities, we’ve got you covered. Our Carolinas-based insurance agents at The Health Insurance Shoppe knows it’s important where your money is going after you have retired, which is why we’ll get to know what your spending habits and lifestyle needs will be. By consulting with our qualified agents, we’ll get your savings in good hands. Give us a call today to find the best fixed annuity plans for your circumstances!