Fixed Index Annuity

Fixed Index Annuities in Dripping Springs, Tx

This is why you must start preparing for the future now to make sure your retirement years are secure. Fixed index annuities are a solution that works for many of our Tx clients.

If you want to learn more about fixed index annuities, talk to the financial professionals at REAP Financial. We help people to secure their future in the the Dripping Springs area.

What Are Fixed Index Annuities?

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

First, a little about the basics of annuities. The four basic forms of annuities are fixed, immediate, variable, and fixed index annuity. All of them share certain features. Annuities work as a contract between a financial institution and an individual. The individual agrees to make premium payments, which the financial organization will return (with added interest) in a lump sum or as incremental payments. All money placed into an annuity is tax-deferred.

So how do fixed index annuities differ from other annuities? Fixed index annuities are linked to a specific financial index, such as Nasdaq. With a flexible interest rate, there is more risk with this annuity, along with the possibility for a stronger rate of return. With many investments, you can expect little more than a return of your premium and a little interest. On the other hand, fixed index annuities let you experience the benefits of a higher interest rate without leaving you exposed to major risks associated with the stock market.

Contact REAP Financial to Find Out More

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