Fixed Index Annuity

Fixed Index Annuities in Austin

As scientific knowledge has advanced, people have started living longer and longer. Now is the time to start preparing for the future and improving your financial prospects. Fixed index annuities are a solution that works for many of our clients.

At Reap Financial, you can learn about fixed index annuities from our experienced financial professionals. We help individuals to secure their future in the communities of Austin.

What Are Fixed Index Annuities?

There are some differences, both major and minute, between fixed index annuities and other investments for retirement. But in the end, they have the same goal: to ensure your financial security.

First, a little about annuities in general. They are available in four basic forms: fixed, variable, immediate, and fixed index annuity. All of them share certain features. Annuities are 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 a lump sum or incremental payments. Any investment into an annuity is tax deferred.

So what are a few of the differences with fixed index annuities? This type of annuity is linked to a specific financial index, like Nasdaq of the S&P 500. People choose this type of investment because it contains the potential to make a greater return than with other options. With some 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 minimized exposure to stock market risks.

Call Reap Financial to Learn More

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