Sean Kelly

The Kelly Agency

Ask Before You Leap When Considering An Annuity

Learn the benefits you will receive from an annuity, and ensure you understand the entire contract.

 What makes fixed indexed annuities the hot favorite package for citizens? The answer is straightforward; it comes with the best features any traditional annuity plan could have.While most annuity plans have complex procedures that are hardly understandable to the public, this plan works on one basic principle- the guarantee of the principal.Moreover, the fixed index annuities are free of any market-loss worries, and the owner of this plan can freely participate in the market-indexed interest. This means that the annual will receive the fixed annuity regardless of the market fluctuations. These features, added with the lifetime income guarantee and the potential of growth linked to the stock market, make it one of the favorite annuities.Referred to as a Fixed Indexed Annuity, this plan acts as a powerful financial tool to cater to the long-term needs of retirement life.Although all of the features mentioned above seem attractive, it is wise to understand any financial investment before making decisions. This article provides helpful information about the areas that should be considered before buying a fixed index annuity.Financial strength and safetyAs mentioned earlier, equity index annuity is at its best regarding the principal's safety. Customers prefer fixed indexed annuities to other grants and mutual funds because their returns are always predictable and precisely according to the agreed plan. Minimum interest is fixed while signing the deal, and a customer keeps receiving it even if the market has crashed.There is no other safe and predictable financial tool that is unaffected by market fluctuation. Therefore, this plan is the safest financial agreement you could have to secure your retirement life.Potential Growth of MoneyUnless you withdraw the money, your annuities will continue to grow without tax deductions. This means that your money will grow more rapidly as you will have ‘extra’ money to earn that would have otherwise been deducted as tax charges. This extra money, combined with the principal, allows your finances a rapid boost.Availability of MoneyA few fixed index annuity contracts in the market allow withdrawals without any penalties. These contracts can cover up to 10% withdraws annually, so when it comes to the money's growth potential under the fixed index annuity agreement, it stands apart from the competition.BenefitsApart from the vital safety and minimum interest guarantee, a fixed index annuity provides you with the perfect opportunity to cash the benefits of market growth without being affected by its potential downfall at times.However, it should be noted that the exact rate of interest or income is not expected as these interests pass through various financial algorithms that play their part in saving your principal during the market recession.Income UsesTime is gone when people have to decide between two main financial products; either choose the safety of your principal and keep yourself out of the market performance or put your money directly into the market to receive higher incomes and more significant losses too if the market had a nasty session.No wonder fixed index annuities are growing in popularity more than any other financial product because they have both plans' features while keeping you away from potential losses.The features of an annuity plan discussed in the article above are a scale on which any project should be measured for its credibility. So far, fixed index annuity plans remain on top of it.Summary:Annuities can be one of the most innovative options for retirement income, depending on your situation and goals. Make sure the advantages of an annuity match up to what you wish to accomplish.This article highlights the factors that have made fixed index annuity plans one of the most popular financial tools. This article also highlights the questions that should be asked by any advisor who suggests this plan.
Sean Kelly picture

Sean Kelly

The Kelly Agency

1902 Ridge Road

Suite 121

West Seneca, New York 14224

sean@kellyagency.org

(716) 603-6851

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