Fixed Florida Annuity
Under the policy of a Fixed Florida Annuity, the annuitant is paid an income monthly. Fixed annuities are also insurance contracts. Fixed annuities can be bought in two ways from the insurance company or financial institution. It can be done by a large sum or a series of payments while the annuitant/recipient is in the accumulation phase (working years). Moreover, the company assures that all the money which has been invested in the Florida annuity will receive a permanent rate of return all the way through the end of the accumulation period. In a fixed annuity a lot of retired individual choose to withdraw the interest only and keep the principal for unexpected emergency.
Fixed annuities types like a life annuities can turn into an income for life with the insurance. When you decide to annuitize than you lose your principal and get yourself an income for life. This is at point that you have just created yourself a pension.
Fixed and variable annuities are different in a sense that in a case of variable annuities your money are held in the stock market, however in fixed Florida annuity your funds become a common part of the insurer’s account, and are subject to the insurance guideline investment rule. The rule is to only invest in the safest investment available. Hence, it is of tremendous importance that the annuitant understands the financial power of the company he or she invests. As these Florida Fixed annuities become more popular a huge number of retired seniors consider them to be a favorable option.
When it comes to fixed annuities we have to talk about index annuities in Florida.
The regulations from the state have placed some limitations of the surrender charges. This the time you can access generally more than 10% of your initial investment.
Be careful of the promises of upside with the stock market (indexes). Insurance companies use complex calculations that only protect them. Generally you would have to get the moon and the sun to line up at the same on a 45 degree angle to the axe of northern polar meridian for them to pay an upside. Insurance annuities companies in Florida offer income withdraw benefit growing at 6%-7% or 8%. Do not mistake those rates for a real rate of return like a CD at 6%. The accumulation numbers achieved after a few years are only for income purpose not for a lump sum withdraw. Ask what will be the withdraw rate and take some to figure out it makes sense for you. You might be better investing in a diversified income portfolio. Get the quick quote to find out if this will benefit you.