An annuity can be a valuable addition to your overall retirement strategy because it offers tax-deferred growth while you’re saving for retirement, and dependable income after you retire. There are several types of annuities to choose from:
- Fixed annuities provide steady, or “fixed,” interest for a specified period of time.
- Fixed index annuities offer potential interest based on positive changes in an external index, but without actually participating in the market.
- Variable annuities give you the possibility of greater potential returns based on the variable investment options you choose, but they will experience market ups and downs – so you could lose money, including principal.
- Index variable annuities allow you to participate in market gains – with a level of protection against market drops.
Our TCI insurance agents can help you determine which annuity may make sense for your individual situation.