Annuity Myths
A fixed indexed annuity (FIA) with a Guaranteed Minimum Withdrawal Benefit (GMWB) gives you a predictable way to build your future retirement Income base for a steady stream of lifetime income — without the risk of actually participating in the market.
5/8/20241 min read
"Annuities carry hidden fees.”
Depending on the type of annuity you purchase (immediate, fixed or fixed indexed), your policy could have no charges. But some annuities do have surrender charges on withdrawals taken during your surrender charge period. Some plans may offer options to take a portion surrender-penalty free. Plus, some fixed indexed annuities (FIAs) have additional fees with optional riders for guaranteed lifetime income, a specific growth rate, wealth transfer and healthcare. These features provide more benefits and can add more value to your policy.
"Annuities are tied to the stock market, so I could lose my money."
With a fixed indexed annuity, your money is not invested directly in the market. It’s linked to an index, so your account value will never be credited less than zero if that index decreases. Linking to an index provides the potential to earn interest, and your account value can grow if the index increases.