Fixed Index Annuity

Austin Fixed Index Annuities

As medical advancements have continued, people have started living longer. Now is the time to prepare for the future and improving your financial outlook. Fixed index annuities are a solution that makes sense for our clients in .

At Reap Financial, you can learn about fixed index annuities from our experienced financial professionals. We help individuals with securing their future in the Austin area.

What Are Fixed Index Annuities?

There are some differences, both large and small, between fixed index annuities, life insurance, IRAs, and other types of investments. But in the end, they all have similar goals: to ensure your financial security.

Before we describe fixed index annuities, let's discuss annuities in general. Basically, there are four types of annuities: variable, immediate, fixed, and fixed index. All of them share certain qualities. Annuities work as a contract between a financial institution and an individual. The individual pays a premium that will, at a predetermined date, be returned back to the individual 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 specific financial index, e.g. the S&P 500. People choose this type of investment because it contains the ability to make a greater return than with other options. With many investments, you can expect little more than a return of your premium and a small amount of interest. Fixed index annuities, on the other hand, have the potential to earn a higher interest rate with less exposure to stock market risks.

Call Reap Financial to Learn More

When you are ready to learn more about fixed index annuities, please contact our office in Austin to schedule a consultation.