Navegó a una página que no está disponible en español en este momento. Seleccione el enlace si desea ver otro contenido en español.

Página principal

Fixed Annuity

If you’re looking to increase your tax-deferred savings for retirement with lower-risk investments and are comfortable with conservative returns, consider a fixed annuity. Compare Annuities

Overview

A fixed annuity allows you to invest for retirement with a fixed rate of return, and not pay taxes until you withdraw your money. A fixed annuity might be appropriate for you if:

  • You have a lower risk tolerance or want to invest a portion of your retirement portfolio more conservatively.
  • You want a guaranteed rate of return without market risk.
  • You expect to be in a lower income tax bracket after you retire.
  • You expect to begin withdrawing these funds after age 59 1/2.
  • You are in your 60s or 70s and are preparing for or are in retirement.

How it works

You purchase an annuity with a specified rate of return and, at retirement, you have the option to convert your assets into a guaranteed stream of income.

With some fixed annuities, you have the ability to add to your investment at later dates.

Key benefits

  • Additional tax-deferred savings opportunity, even if you’ve maxed out your 401(k) plan or Individual Retirement Account (IRA) contributions.
  • Fixed rate of return, so you know up front how much your investment will earn, and you avoid market fluctuations.

Fees

Considerations

  • May include surrender penalties for early withdrawal.
  • Potential tax penalties for withdrawals before age 59 1/2.
  • Consult your tax advisor about other possible tax implications.

We’re here to help

Request a Consultation

Call us 1-866-246-5056

Contingent deferred sales charge (CDSC)

If you withdraw money from an annuity contract or surrender the contract within a certain period of time after investing, the insurance company may assess a contingent deferred sales charge (CDSC). Usually, the CDSC is a percentage of the purchase payment withdrawn, and it declines gradually over the CDSC period.

For example, a seven year CDSC may decline over the first seven years of your contract: 7%, 6%, 5%, 4%, 3%, 2%, 1%, 0%.