A fixed annuity is a secure investment that offers a fixed interest rate for a guaranteed length of time. It is similar to a certificate of deposit (CD), but the minimum rate is guaranteed and it is usually several percentage points higher than what banks pay on CDs. Also, you do not pay taxes on an annuity until you start making withdrawals. Additionally, fixed annuities often let you make withdrawals penalty free, with certain restrictions.
One of retirees’ biggest concerns is outliving their savings. With a fixed-income annuity, you will not have to worry about your retirement funds. A fixed income annuity is predictable, meaning you have a guaranteed income for life.
There are two types of fixed annuities: immediate and deferred. Immediate fixed-income annuities allow you to access to your assets immediately. Deferred annuities give you access to your assets at a future date.
Do Annuities Differ?
Yes! Just like interest rates at banks, fixed annuities’ interest rates vary widely. It is important to find an insurance agency that offers competitive rates, excellent customer service, and other great benefits. Patrick Crowder Insurance has 15 years of experience in fixed-income annuities and can guide you to the right choice to give you security for the future.
Learn more by calling us today at our Monte Vista office at 719-852-0375 to discuss your options for fixed-income annuities in Colorado.