Fixed annuities are a great way for retirement-age individuals to guarantee a stable income supplement once they retire. These annuities give the owner a set amount of money each distribution period until the term of the annuity ends. Fixed annuities are just one of the options your wealth manager at Black Harbor Wealth Management will discuss with you when planning for your retirement. Today, we’ll look at the basics of fixed annuities, so you better understand your options during your consultation.


Purchasing a Fixed Annuity

Purchasing a fixed annuity can be done in a couple ways. Individuals can pay for them in a single lump sum payment when nearing retirement, or through a series of periodic payments while the buyer is still working. The purchase price is used as an investment in the annuity.

What Does it Do?

Fixed rate annuities are guaranteed to earn a set amount of return during the accumulation phase. The accumulation phase is the period of time that the money used to purchase the annuity is invested in the specified fund. After the accumulation phase ends, the guaranteed amount of return is dispersed to the annuitant (the annuity owner) for a determined amount of time.

Is an Annuity Right for You?

Fixed annuities are a fantastic option for individuals to have predictable income during their retirement years. However, not everyone will benefit from an annuity. Always talk to your wealth management advisor before purchasing an annuity. At Black Harbor Wealth Management, our advisors will examine your portfolio, consider your existing investments, and discuss the best investment options for you. Contact us today to schedule your free consultation and start planning for your retirement.