Fixed Annuities

Planning for retirement is not as simple as it used to be. There are so many options these days and for many, it’s not always an easy task to find the right products. Many retirement products can’t guarantee you an amount when you retire. Many people are tired of watching their retirement accounts fluctuate with the market.

If you’re tired of riding the Wall Street roller coaster, consider a fixed annuity. If you’ve never heard of them, you may be asking, “What are fixed annuities?” Fixed annuities can guarantee you set interest rates for a certain period. These fixed interest rate periods can last anywhere from one, three, five, seven or even ten years. A fixed annuity can also offer different annuitization payout choices and even a guaranteed income for the rest of your life. Plus, a fixed annuity can help you defer taxes on the interest earned. You don’t have to pay for taxes until you start withdrawing from the annuity. If you choose to withdraw after the age of 59 ½, then these will be taxed as ordinary income, and 10% federal additional tax if you take money out before then. With a fixed annuity, you can see your assets grow, rather than watch them get taxed annually.

At Wealth and Insurance Solutions, LLC we can offer you a variety of retirement planning products to help you achieve your goals. We work with a variety of insurance companies and we work with these partners to find you the right retirement plan that suits your needs. We have worked with numerous clients over the years to help them set up their plans, preserve their assets and grow their wealth.

Fixed Index Annuities

There are many ways you can approach retirement planning, but you can never predict what will happen in the future. Retirement accounts are often at the mercy of the market and the whims of Wall Street. When you want stability, yet still reap benefits when the market is up, then consider a fixed index annuity. What is a fixed index annuity? Simply put, this type of annuity allows your money to grow based on an external index. When you invest in a fixed index annuity, you can receive the minimum interest rate guaranteed, but when the external index has a higher return than that interest, you can then get a bigger payout.

A fixed index annuity also has the same tax deferred benefit as that of the fixed annuity. Interest earned will not be taxed until you withdraw the money. You can also choose from a variety of indexes your investment will track for a specific time period. At the end of this time period, if the index has a positive return and the value goes up, then so does your annuity. If it is negative, on the other hand, you still get the minimum interest. Simply put, your principal never goes down, but you reap the benefits of any good market years.

There are different factors that affect how much interest can be credited to a fixed index annuity in a given year:

Spread – a percentage subtracted from the increase in an index’s value.

Participation rate – is the rate which determines what percentage of the increase of an index may be used to set the interest of the annuity.

Interest rate cap – certain products have a maximum interest in a given period. Should the index’s performance exceed the cap, then the cap will be used to compute the interest to be credited to the annuity.

Wealth and Insurance Solutions has the knowledge and experience to determine which product can help you attain your goals. We work with many of the best national insurance companies and find you the best possible options. Fixed index annuities allow you to feel confident about your future and your retirement plans. No matter what happens on Wall Street, not only is your principal protected, but it can grow even if the market is down or flat.

Spread – a percentage subtracted from the increase in an index’s value.


Annuity guarantees are based on the financial strength and claims-paying ability of the issuing insurer. They are insurance products, and therefore, subject to surrender charges, holding periods, and other fees which vary depending on the carrier. Annuities are NOT insured by the FDIC.

Certain fixed annuities may have lifetime income guarantees in the base policy, but others have riders for added premiums. Please note that when you contact us, you may be given information about purchasing insurance products.