Fixed annuities are nothing more than a fixed rate for a fixed period of time, issued by insurance companies. Oh, by the way, they are tax-deferred investments as well. There are no hidden fees like some of the other annuity products.
How do insurance companies make money if there are no fees? Simple. You and I wouldn’t go out today and buy a 30-year bond, but insurance companies will and have been for years. They make money off the spread that they earn and what they are paying you. For example, let’s say XYZ insurance company offers to pay you 3% for five years. They might be making 5.5% on their money internally from the bonds. They pay you 3%, while earning 5.5% on their own money thus making a 2.5% profit. Not bad when you factor in the millions and millions of dollars they take in on fixed annuities.
Are they safe? Yes
Can you take out the interest on a yearly basis? Yes
Is my principle protected? Yes
Can I get my money back after the time period I agreed to invest? Yes
How long will my money be tied up? You pick. Generally, the length is anywhere from 2 to 10 yrs.
For a list of fixed annuity rates, fill out the short form below
Check the background of your financial advisor on FINRA’s BrokerCheck
Investment advisory and financial planning services are offered through Alphastar Capital Management, LLC; a SEC registered investment advisor. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser or investment adviser representative has attained a particular level of skill or ability. Additional information about Alphastar Capital Management, LLC is also available on the SEC’s website at adviserinfo.sec.gov. Live Free Retirement Advisor and Alphastar Capital Management, LLC are separate and independent entities. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Live Free Retirement Advisor offers insurance products through individuals licensed sell insurance. Comments regarding guaranteed returns or income streams refer only to fixed insurance products offered by Live Free Retirement Advisor and, unless specifically stated, do not refer in any way to securities or investment advisory products offered by Alphastar. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company and are not offered or guaranteed by Alphastar.