Annuities - Fixed/Indexed

An annuity is a contract with an insurance company that provides either immediate income (an immediate annuity) or tax-deferred growth (a deferred annuity). An immediate annuity provides income for a set number of years (e.g. 10 or 20 years), a person’s lifetime, or a combination (e.g. lifetime with a minimum of 20 years). Normally, a portion of each payment is tax-free because it’s a return of principal (the exclusion ration).

There are several types of annuities, such as Fixed Annuities, which guarantee a rate of interest for a set period of time (e.g. 5% for 4 years). Annuities are products of the insurance industry, and are not guaranteed by any bank or insured by the FDIC. Guarantees are based on the claims paying ability of the insurance companies. Most annuities have surrender periods during which you are penalized for withdrawals over a certain stated percentage.

The Stahlschmidt Financial Group offers a wide variety of all types of annuities from strong and respected insurance companies. We can help you to decide if annuities make sense for your portfolio and match your needs with the appropriate available products.