ALL THINGS BALANCED
Risk/Reward Tradeoff- Normally there is a direct inverse relationship between possible risk and possible reward. To realize greater reward, one must generally accept a greater risk, and vice versa. Retirees are aiming right down the middle with safety and growth using a Fixed Indexed Annuity.
In light of this fabulous tradeoff, there are three questions that must be answered, when researching what type of annuity is right for you.
1. What level of risk am I willing to assume with the annuity?
If most people are concerned about high fixed interest rates with no risk, regardless of market conditions, consider a Fixed Annuity which is similar to a CD but currently paying higher interest rates.
If willing to accept a lower fixed rate, but looking for potentially greater interest gains, consider an Indexed Annuity.
2. How soon will I need the regular stream of income payments from the annuity?
If income will be taken within the first year, consider an immediate annuity (offered in Fixed and Indexed types).
If income will be taken at some time further in the future, consider a deferred annuity (offered in Fixed and Indexed Types).
3. How many premium payments will I be making into the annuity?
If only a single payment will be made into the annuity, consider a single premium immediate annuity or a single premium deferred annuity.
If making more than one payment into the annuity, consider a flexible premium deferred annuity.
Data provided by Wink, Inc.
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