Broker Check
<strong>Are Annuities a Good Investment?</strong>

Are Annuities a Good Investment?

The world of investing can be a complicated place. With so many options available, it's easy to feel like you've bitten off more than you can chew. 

At Kelly Capital Partners, we're here to help you get started on your financial journey. We know that saving for retirement is a daunting task, but it doesn't have to be a complicated one. Fixed Index Annuities are a great way to diversify your financial portfolio and prepare yourself for the future. 

Let's take a closer look at what they are and how they work. 

What Are Fixed Index Annuities? 

Fixed Index Annuities are a type of annuity that offers you the opportunity to invest in both a fixed interest rate and an index, like the S&P 500. This means you can get the best of both worlds when it comes to your investment strategy: access to growth potential and protection from stock market loss.

How Does a Fixed Index Annuity Work?

Here's how they work: You enter into a contract with an insurance company. You pay them a set amount, and they invest that money into bonds, stocks, and other types of investments. Once the term of the contract expires, you can either get your initial investment back or continue to receive regular payments from the insurance company, which has grown your original investment through their investing strategy. 

What Are the Benefits Of Fixed Index Annuities? 

Are you looking to grow your money at a fixed rate that doesn't fluctuate with the market? A Fixed Indexed Annuity might be the investment you've been looking for. 
Here is an overview of the benefits. 

  • Earn tax-deferred interest on your money: Unlike most other types of investments, your earnings will not be taxed until they are withdrawn.
  • A steady stream of income for life: As long as you and/or your spouse are alive, the amount you receive will increase or stay the same, no matter how long you live or how the market performs. If the account value reaches zero, the annuity still pays out the same amount (or increase) until each spouse has passed away.
  • Protects your principal from market loss: It preserves your principal while still having the growth potential. Gains are locked in, so even if the market goes down, those gains are protected from loss.
  • Bonuses: Some FIAs have bonuses that can be used to boost your earnings. However, some also have fees involved. You'll want to talk to one of our financial advisors about how an FIA can help you make the most of your retirement savings.
  • Benefits to your beneficiaries: If you or your spouse pass away with assets still in the account value, then that balance will pass on to the beneficiaries. Our first priority is helping you take care of yourself and your family. We want to learn more about your personal situation, identify your dreams and goals, and understand your tolerance for risk. Long-term relationships that encourage open and honest communication have been the cornerstone of my foundation of success.

What To Consider When Purchasing an Annuity 

So, you've decided to purchase an annuity. You're probably excited to see your income grow. Before you get too far in the process, there are a few things you should know.

Is It an "A-Rated" Insurance Company?

The first thing to look at is the insurance company behind the guaranteed rate of return. You want an "A-Rated" insurer who has been in business for a long time and is considered extremely stable. This will give you confidence that they have the financial strength to back up the guarantees they've made.


Annuities are long-term investment vehicles that typically come with limited liquidity, so it's important to look at the terms of any contract before signing on the dotted line. There are usually limited withdrawal options available; however, many annuities allow 10% penalty-free annual withdrawals after the first "surrender charge" period (usually 7 to 10 years).

<b>Types of Annuities </b>

Types of Annuities

Annuity investors want to know their retirement funds are safe, and that they're getting a good rate of return/growth. There are three main types of annuities: fixed, variable, and fixed index income.


The Next Step?

For more information about our products and services schedule a meeting or register to attend a  workshop.

Or give us a call at 248-262-7217