Fixed Indexed Annuities And Their Benefits
There are many options when it comes to investing money. Whether you have a huge capital at hand or a small surplus amount you wish to save for future, the returns the investments yield make them better than leaving the amount in the savings accounts. For those who do not understand the process of trading and investments, there are bot trading tools like Bitcoin Loophole. These provide a good level of automation and users can save a lot of time. When we talk about investment options especially for retirement planning, annuities are some of the most popular ones. Fixed indexed annuities (FIA) are now gaining a lot of traction due to the many benefits they offer. As youngsters are keener on starting their retirement planning process early, FIA is becoming very popular.
Benefits of fixed indexed annuities
Guarantee of income during the retirement period
Unlike other investment plans which give the user a lump sum in return after the funds expire, FIA gives regular installments. This makes this plan a suitable one for those willing to create a steady income during the retirement period. The disbursal of the income and taxation might be similar to the generic income tax norms.
Easier to plan the other funds
With the guaranteed income feature, FIAs make it easy for the investor to plan his funds. There are not many that offer the kind of predictability that this one delivers. The market fluctuations might not influence your income for the future. You would be able to calculate exactly how much amount you would be receiving on a regular basis from the FIA.
Market volatility doesn’t affect your principal
When we talk about huge returns there are some high-risk investment plans that are severely influenced by the market risks. These are the ones where even the principal would be at stake. But with FIAs, you have the assurance that your principal amount stays intact irrespective of the market conditions. The interest rates might drop lower than your prediction but there is no chance of receiving zero interest with FIA.
So with many such benefits if you are looking for a secure long-term investment then FIAs are definitely easy choices. Contrary to the popular notion FIAs are not too expensive. The fees and the commissions charged by the financial institutions for the FIAs are very much similar to the similar expenses you would bear for other retirement plans.