A fixed annuity is a fairly low-risk retirement vehicle that provides payment of a specific sum of money at a fixed rate of return over a set period of time. The investor can either deposit the funds as a lump sum or as payments over the years. In a fixed annuity, the investor is guaranteed both the earnings and the principal. When the annuity is annuitized, the investor will receive a fixed amount of income on a regular schedule. Fixed annuities generally invest in bonds while variable annuities invest in mutual funds.
Fixed annuities come in two primary forms. Immediate annuities begin to payout immediately while deferred annuities defer payment to a later date when the annuity is annuitized. To find out which type of fixed annuity is best for you, call the investment professional at Savage & Associates. We can work with you to determine how you can maximize your funds to prepare for retirement.
All guarantees are based on the financial strength and claims-paying ability of the Issuing Insurance Company.
Call 419-475-8665 or fill out our on-line request form for more information or to schedule an exploratory appointment with our experienced professionals at Savage & Associates.