When planning for retirement, one of the last things you need on your mind is the fear of losing the money in your retirement plan. The good news is the majority of typical annuities don’t make you lose money. Fixed annuities will offer you a fixed interest rate completely unrelated to the performance of any market or index. Fixed index annuities offer similar protection where your annuity grows based on the positive movement of a particular stock or bond index. Now, here’s the catch should your index perform negatively? The value of your annuity is not allowed to fall below the value of the previous year. On the other hand, a variable annuity is a riskier move, allowing your annuity to grow based on investments. If the performance of your investment is negative, this can result in you losing money in your annuity. Ultimately, it is up to you. If you want to avoid the risk involved in a variable annuity, or if you want a more safe, reliable income stream with a fixed annuity, it’s always best to speak to an insurance agent or financial advisor
We’d be happy to review your insurance coverage options with you! Give us a call at (570) 823-7626 or visit https://etroyinsurance.com.