Retirement income
Fixed & Indexed Annuities
Guaranteed interest. Protected principal. Income for life. Here is how they actually work.
What is a fixed annuity?
A safe place for money you cannot afford to lose
A fixed annuity is a contract with an insurance company: you deposit money, the insurer guarantees a minimum interest rate and the return of your principal, and—if you choose—pays you an income for the rest of your life.
Annuities began as retirement-income vehicles, and that is still what they do best. Today’s contracts add tax-deferred growth, estate features that bypass probate, and lifetime-income riders that let you keep access to your principal while guaranteeing a paycheck.
Annuities began as retirement-income vehicles, and that is still what they do best. Today’s contracts add tax-deferred growth, estate features that bypass probate, and lifetime-income riders that let you keep access to your principal while guaranteeing a paycheck.
Why retirees choose fixed annuities
- Guaranteed minimum interest and principal protection
- Income you cannot outlive, with access to principal
- Interest that grows tax-deferred until withdrawn
- An estate asset that passes directly to beneficiaries
- Index-linked crediting with a floor of zero (fixed index annuities)
Ready to talk it through?
A free, no-obligation conversation with a licensed Florida professional. No pressure, no jargon.
Or call (954) 790-5000
Watch
Fixed Index Annuities 101
How a fixed index annuity provides income you cannot outlive, protects your principal and participates in market gains—but not losses.
Common questions
Frequently asked questions
Are fixed annuities FDIC insured?
No. Annuities are issued by insurance companies, not banks, so they are not FDIC-insured. Guarantees are backed by the claims-paying ability of the issuing insurer, and Florida maintains a Life & Health Insurance Guaranty Association as an additional layer of protection within statutory limits.
What is the difference between a fixed and a fixed index annuity?
A traditional fixed annuity credits a declared interest rate. A fixed index annuity credits interest based on the movement of a market index (such as the S&P 500) subject to caps or participation rates—but your principal is never reduced by a negative index year.
How is this different from a variable annuity?
With a variable annuity, your account value rises and falls with the underlying investments and you bear the risk. Most negative headlines about annuities concern variable products. Fixed and fixed index annuities are built to protect principal.
Can I get my money out?
Most contracts allow free withdrawals of up to 10% per year and waive surrender charges for nursing-home confinement or terminal illness. Withdrawals beyond the free amount during the surrender period incur charges, and withdrawals before age 59½ may be subject to a 10% IRS penalty on earnings.
How is the interest taxed?
Interest grows tax-deferred inside the contract and is taxed as ordinary income when withdrawn. Tax-deferred is not tax-free; we recommend reviewing withdrawals with your tax professional.
Keep exploring
Related topics
Personal Pension Plan
Use an annuity to create your own lifetime pension.
Social Security Planning
Coordinate your filing date with your other income.
Not sure where to start? Ask us a financial question.
Every situation is different and there is no one-size-fits-all retirement plan. Ask anything—you’ll get a straight answer from a licensed professional, not a sales pitch.