A Fixed Indexed Annuity (FIA) offers you with another option for investing all, or a portion, of your settlement proceeds. The FIA option should be considered based on your age and desire to secure your retirement planning needs. Your immediate financial needs are best provided for with the Structured Settlement option. So a combination of a Structured Settlement and a Fixed Indexed Annuity can optimize your lifetime financial planning needs.
Today’s Fixed Indexed Annuities offer a range of features and benefits that can secure your financial future:
- Accumulate assets for retirement
- Preserve assets that you have accumulated
- Convert those assets into a guaranteed stream of lifetime income
- Provide a financial legacy to your loved ones
Most fixed annuities have two phases, the accumulation phase and the distribution phase. You do not pay taxes on the interest portion component during the accumulation phase. In the distribution phase, you are only taxed on the interest portion of your distributions.
Other major benefits of a FIA are:
- Your investment is guaranteed a specific minimum interest rate
- Your account benefits from market growth
- You have no risk of loss of contract value if there are market downturns
The FIA also provides an automatic annual reset. This means that each year’s ending value becomes your next year’s beginning value. The annual reset also locks in any interest your contract earned during the year.
Our consultants can offer you advice on whether you should consider a Fixed Indexed Annuity as a component of your settlement solution.