Fixed Index Annuity

Fixed Index Annuities in Austin, Texas

Now, more than ever, it’s vital to start formulating a plan for the future, because financial security is a imperative if you’re going to enjoy your long, post-retirement life. This can be achieved with the help of fixed index annuities.

At Reap Financial, you can find out more about fixed index annuities from our knowledgeable financial professionals. We have helped numerous people in the Austin area with securing their financial future.

What Are Fixed Index Annuities?

Annuities serve the same purpose as all other retirement options; they are designed to provide long-term financial safety for you and your family. But they do have some distinct properties.

First, a little bit about annuities in general. They are available in four basic types: immediate, fixed, variable, and fixed index annuity. All of them share certain traits. At the base level, they work as a contract between an individual and a financial institution. The person agrees to make premium payments, which the financial institution will return (with interest) in a lump sum or as incremental payments. All money placed into an annuity is tax-deferred.

So what are fixed index annuities exactly? Fixed index annuities are linked to a financial index, like the S&P 500. With a flexible interest rate, there is more inherent risk with these annuities, in addition to with greater potential for higher return. With many investments, you can expect little more than a return of what you have paid and a small amount of interest. Fixed index annuities have the potential to earn a higher, market-linked interest rate with minimized exposure to stock market risks.

Call Reap Financial to Learn More

If you are prepared to learn more about fixed index annuities, please contact our office in Austin to arrange a consultation.