What are Annuities?
Annuities are insurance contracts in which the company promises to pay a stream of income, either now or sometime in the future. Annuities can give clients the stability they are looking for during their retirement years. Annuity benefits include protection of principal from market volatility, fixed interest growth, tax deferral, and a predictable guaranteed lifetime stream of income.
The annuity landscape is ever evolving from regulatory change to company product changes. Pinnacle Financial services is here to help, from case analysis and design to comprehensive suitability evaluation.
Interest is set by the insurance company for a period of time.
With an immediate annuity, or SPIA, the insurance company will begin a guaranteed fixed income payment within a year from contract issue. The client can choose a guarantee lifetime payment, or typically a payment as short as 5 years, depending on their goals.
Fixed Index Annuities
Interest is credited based on the change of an index such as the S&P 500. Because your money is not actually invested in the index, there is never a risk of loss due to market fluctuations.