Fixed Indexed and Multi-Year Guranteed Annuities
What Are Fixed Indexed Annuities (FIAs)?
A Fixed Indexed Annuity (FIA) is a long-term savings option designed to provide growth potential without market risk. Unlike traditional investments, FIAs allow your money to grow based on a stock market index, such as the S&P 500 while guaranteeing that your principal is protected from market downturns.
Key Benefits of Fixed Indexed Annuities:
✔ Principal Protection – Your initial investment is safe, even if the market declines.
✔ Tax-Deferred Growth – Pay no taxes on your earnings until you withdraw them.
✔ Potential for Higher Returns – Interest is credited based on the performance of a selected market index, with no risk of losing money due to market drops.
✔ Guaranteed Lifetime Income – Convert your annuity into a reliable income stream for retirement.
✔ Flexible Payout Options – Choose lump-sum, periodic payments, or lifetime income streams.
What Are Multi-Year Guaranteed Annuities (MYGAs)?
A Multi-Year Guaranteed Annuity (MYGA) is a type of fixed annuity that offers a guaranteed interest rate for a set period, making it a safe and predictable way to grow your retirement savings.
Key Benefits of Multi-Year Guaranteed Annuities:
✔ Guaranteed Interest Rates – Lock in a fixed rate for a specific term (e.g., 3, 5, or 7 years).
✔ Zero Market Risk – Your money is not affected by stock market fluctuations.
✔ Tax-Deferred Growth – Earnings accumulate without immediate taxation, allowing your savings to grow faster.
✔ Stable Retirement Planning – MYGAs provide financial security with no surprises.
✔ Flexible Terms – Choose a time frame that matches your financial goals.
Which Annuity Is Right for You?
- If you want growth potential with downside protection, an FIA might be your best option.
- If you prefer a fixed, predictable return, an MYGA could be the better choice.
At Dunlap Financial Services, we specialize in helping individuals secure their financial future with tailored annuity solutions. Let’s find the best option to fit your retirement goals.
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