Fixed Index Annuity

Fixed Index Annuities in Austin, Texas

It's vital to start formulating a plan for the future now, because financial security is a necessity if you’re going to enjoy your long, post-retirement life. One solution that can help accomplish this is a fixed index annuity.

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

What Are Fixed Index Annuities?

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

First, a little bit about annuities in general. They are available in four basic formats: immediate, fixed, variable, and fixed index annuity. Annuities work as a contract between an individual and a financial institution. After paying a premium for a predetermined amount of time, the financial institution will return this investment (with added interest) in incremental payments or as a lump sum. Any investment into an annuity is tax deferred.

So how do fixed index annuities vary from other investment options? This annuity is directly connected to a specific financial index, such as Nasdaq of the S&P 500. Fixed index annuities are in the middle of the road as far as risk is concerned and offer the possibility for a higher rate of return. Many investments can offer little more than a return of your premium along with a small amount of interest. Fixed index annuities let you experience the benefits of a solid interest rate without major stock market risks.

Call Reap Financial to Learn More

If you have any questions about fixed index annuities or you’d like to set up a personalized consultation, contact our office in Austin.