Fixed Index Annuity
In the past, the road to accumulating assets for retirement led almost exclusively to banks for all but the most sophisticated investors. Today, the options seem endless. With all the financial products available to you, it would be easy to think there’s nothing new under the sun – but you’d be wrong.
Today, one of the fastest-growing financial products is an annuity. Americans own more than $1 trillion in annuities.¹ Simply put, an annuity is issued by an insurance company, and it can offer benefits that you won’t find in other investments. There are two distinct types of annuities.
1. Fixed Annuity – As the name suggests, your money earns fixed rates of interest return. When you decide to take the money out, you can elect to receive a guaranteed fixed payout every month. The relative newcomer in this category – the product we like to call “the better mousetrap” – is the Equity Indexed Annuity, EIA. It pays a minimum fixed rate of return, and you might also earn interest based on a generally used stock market barometer such as the S&P 500® Index, while eliminating market risk to your principal. Some of the fixed-indexed annuities offer bonuses up to 20% credited to your investment account immediately!!
2. Variable Annuity – With this type of annuity, your money is invested in sub-accounts that can be invested in stocks, bonds, or cash to pursue a range of investment objectives. The sub-accounts that invest in stocks and bonds are considered securities and, as such, are subject to market rick and fluctuation. The value of this type of annuity is based on how well these sub-accounts perform.Information is a re-print from the brochure: “Building A Better Mousetrap”. To get a copy of the brochure, click here.The Financial Services Fact Book- Variable annuities are not FDIC insured or bank guaranteed, and are subject to risk including the possible loss of principle. Variable annuities are sold by prospectus only, which should be read carefully before investing. The prospectus contains important information, including charges and expenses.
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All Faith Financial Services
260 Northland Blvd #119
Springdale, OH 45246