Understand the Benefits

Of Annuities

Retirement Annuity Review

Understanding Fixed Indexed Annuity Benefits

Perhaps you are looking for ways to build and protect your income before retiring. Because of the benefits they come with, many individuals consider a retirement annuity as a part of their strategy.

Is An Annuity A Good Option For Retirement

Every person’s situation is different. These are some factors to consider.

Start by identifying your retirement goals.

Determine how much wealth you have overall. What is your emergency fund? Also, what are your retirement income needs? The right annuity policy can help you ensure you won’t outlive your income. The idea behind a retirement annuity is to maintain a reasonable rate of return,** while securing the safety of your money. Learning more details and understanding key benefits can help you determine if an annuity is the right option for you. 

The Benefits Of
Fixed Indexed Annuities

Fixed indexed annuities (FIAs) offer a number of benefits. In addition to protecting your principal, FIAs guarantee* your retirement income.

Here are five advantages of fixed indexed annuities: 

Fixed indexed annuities earn income tax-deferred. No tax is due until a withdrawal is made on the annuity. This allows compound interest to grow.

Lifetime Income

A retirement annuity provides a guaranteed* income stream during retirement. Additionally, you have multiple options in terms of how and when to withdraw your money. 

Indexed Interest

FIAs track the performance of an index such as the S&P 500 or Nasdaq. However, they are not directly tied to an index. Thus, they provide some of the same benefits as index funds but are safer because your principal is protected. 


No matter what the market conditions are, a fixed indexed annuity will grow with a set interest rate. As a result, the value of your money increases over time. 

Your Family Legacy

When you die, your beneficiaries receive your death benefit. The beneficiary will not be subject to probate if it is structured correctly.

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FIAs and Interest Rates

A few factors determine the interest rate of an FIA. In most cases, annuity rates are set by insurance companies. Your earnings are also guaranteed by the insurer. So, even though it’s a low-risk purchase, you won’t lose money. Basically, you can maintain your assets and earn a reasonable return.**

Fixed Indexed Annuities And The Stock Market

As mentioned, index annuities track the movement of an index, such as the S&P 500 or Nasdaq. However, they are not linked directly to the stock market. FIAs maintain the same interest rate regardless of market changes. This is because an FIA is a contract with the insurance company, not an investment. They guarantee* your interest rate. 

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Learn More About
Fixed Indexed Annuities

If you are considering a retirement annuity, make sure it meets your needs. Our team at Sonoma Financial & Insurance Services can discuss all the options in detail with you. Register or call us to attend one of our informational seminars (with a gourmet meal) that come at no-cost, and no-obligation. 

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