An annuity is designed to accept and grow funds from an individual and then, upon maturity, pay out a stream of payments to the individual. Annuities are primarily used as a means of securing a steady cash flow for an individual during their retirement years. Eagle Financial Group offers Fixed, Variable, Indexed, and Single Premium Immediate Annuities.
If you are a more conservative investor, a fixed annuity may appeal to you. Fixed annuities offer steady, guaranteed growth. Fixed annuities also offer tax-deferral to help your money grow faster and a lifetime income option to keep your retirement secure. Your purchase payments earn a guaranteed interest rate for a set period of time. At the end of the period, a new fixed rate becomes effective, based on current interest rates.
A variable annuity is an insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. The portfolio generally invests in equity securities and its performance determines the amount of this total payment.
An indexed annuity is a special class of annuities that yields returns on your contributions based on a specified equity-based index. An indexed annuity involves more risk, but more potential return than a fixed. There are various methods for calculating the interest that would be earned on an indexed annuity since it depends on the index value.
Single Premium Immediate Annuity (SPIA)
A SPIA is a contract where you would invest a lump sum of money and then you are given your money back over time with interest. You will receive guaranteed payments either for life or a set period of time, whichever you choose. The purpose of a SPIA is to provide you with a guaranteed income stream. During retirement, market fluctuation of principal and varying interest rates leads to uncertainly of future income. A SPIA “REDUCES THE RISK” and provides certainty and peace of mind in providing an income you can count on!
If you think an annuity is right for you, or you would like to know more about annuities and understanding their differences, contact one of Eagle Financial Group’s Representatives at (800) 205-7203 today.