Benefits of a 5-Year Fixed Rate Annuity
Benefits of a 5-Year Fixed Rate Annuity
Do you ever find yourself daydreaming of retirement? From spending time with family to working on your favorite hobby, we’re sure there are a lot of things you are looking forward to in your golden years. And while there are many things we plan to do, have you planned for how you are going to pay for your retirement?
One strategy to back up your financial planning is a 5-year fixed rate annuity, which offers a guaranteed fixed interest rate for a certain amount of years. This can create another income option that can help supplement your retirement plans.
Safety
A 5-year fixed rate annuity is a safe and stable investment in your retirement. One of the benefits to this kind of annuity is that you are set at a fixed rate for five years, which means you avoid any market volatility that can be brought on with other investments such as stocks and bonds. Fixed annuities are a safe way to invest your money, and they are locked in at an interest rate for the five years, so you know your money will grow.
Flexibility
With a 5-year fixed rate annuity, you may have the flexibility to make a withdrawal of a certain percentage each year without a penalty fee. After the initial five-year period of your annuity you will have the option to withdraw your money without any penalty fees.
Tax Benefits
While your money continues to gain interest in an annuity, you are not taxed on that investment. Your investments remain in your annuity and will continue to compound over time. You are not taxed on the money you have invested until you start receiving payments from your annuity.
Protection
When you invest into a 5-year fixed rate annuity, you can be assured that your money is protected. Fixed annuities are backed by the insurance company that is offering the annuity, so your money will not be lost to any market rates or volatility.
Overall, a 5-year fixed rate annuity can be an excellent way to supplement your retirement and leave you feeling secure in your future financial health. If you’re ready to look into finding an annuity that is right for you, Americo Annuity is ready to help you find the best option. Our Platinum Assure Series is great for those looking to supplement their retirement income. Contact an agent today or discover your potential rate at Americo Annuity.