Top Income Stream Annuities: (FIA)
These annuities start paying out income almost immediately after a lumpsum investment. They are ideal for individuals who need a steady income stream right away, such as someone who is retiring and wants to convert a portion of their savings into predictable monthly payments. With immediate annuities, you can choose to receive payments for a fixed period or for the rest of your life.
Multi-Year Guaranteed Annuities (MYGA):
MYGAs are a type of fixed annuity that guarantees a specific interest rate for a set number of years (e.g., 3, 5, 7, or 10 years). They are similar to Certificates of Deposit (CDs) but typically offer higher interest rates and taxdeferred growth. At the end of the guaranteed period, you can either withdraw the funds, renew for another term, or convert the balance into a different annuity.
Fixed Indexed Annuities: (FIA)
These are like hitting for distance. Your returns are tied to a market index, such as the S&P 500, allowing for growth potential while your principal remains safe. If the market rises by 10%, and you have an 80% participation rate, you earn 8%. If the market dips, your principal remains untouched.
Fairway Tip: Indexed annuities are popular because of their flexibility and benefits. They offer options that can create a lifetime income stream, focus purely on accumulation, or cater to other specific financial goals, making them a versatile choice for retirement planning