Fixed & Indexed Annuities

Annuities are vehicles that earn interest on the premium invested so the funds can later be distributed to you in an income stream. Annuities are a great tool to help save for retirement.

There are two phases in the life of an annuity: the accumulation phase and the distribution phase. In today’s market, many annuities offer interest rates that far exceed those offered in the CD market. Graber & Associates offers various types of annuities to fit any risk tolerance – including fixed, indexed, and multi-year guaranteed annuities (MYGA).

Typically, fixed annuities offer a guaranteed rate in year one with the potential for the rate to change in later years, while MYGAs guarantee the rate for the entire period. Indexed annuities credit interest based on how specified indexes perform, but you are not directly invested in the stock market.

When shopping for an annuity it’s important to consider the surrender period, what value would be used in determining the death benefit, free withdrawal opportunities during the accumulation phase, the annuity premium tax on non-qualified funds in the state of South Dakota, and of course the potential interest to be earned. Some annuities also provide enhanced benefits for long-term care needs.

Don’t hesitate to contact a Graber & Associates agent to help you navigate the complexities of annuities and financial planning.