Secure term choice fixed annuities provide guaranteed fixed interest rates during their contract periods, making them a smart and cost-effective way of providing safe income during retirement.
Like all annuities, fixed annuities come with both advantages and drawbacks. Working with a financial advisor will be essential when making this decision for yourself or someone else’s retirement strategy.
Secure term choice fixed annuities offer you a guaranteed interest rate on deposits for a specified time period, providing security against market volatility and offering protection from an imminent stock market collapse. Unfortunately, they also lack potential upside and could slow the growth of your investments more rapidly than diversifying a portfolio would allow.
Those withdrawing funds prior to the end of an annuity‘s surrender period will incur a fee that typically equals a percentage of your withdrawal amount as a penalty for early withdrawals from their investment vehicle. This penalty fee serves to deter investors from making early withdrawals.
Though secure term choice fixed annuities do have their share of drawbacks, they are an effective means of providing consistent, reliable income in your retirement years. You can select to receive regular payments either for a set number of years or for life; additionally you may even choose an inflation-adjusted payout option to preserve purchasing power in future.
Secure term choice fixed annuities are among the safest types of annuities available, providing premium protection to protect any of your original investment in case the market goes south and no returns are guaranteed from day one of a contract’s duration. In addition, they have set rates of return that allow investors to easily predict how much income payments they will receive over time.
The New York Life Secure Term MVA Fixed Annuity II is a single premium deferred annuity offering 10% withdrawal of its accumulated value during its first policy year, making it suitable for people aged 0-85 and offering various riders such as an Enhanced Beneficiary Benefit Rider and Spousal Continuance Rider. The policy form number is ICC10-P114 with guarantees backed by New York Life’s claims-paying ability.
If you are in search of a secure term choice fixed annuity, Thrivent financial advisors are ready to provide tailored recommendations that meet your individual needs and goals. We can discuss both their benefits and drawbacks as well as tools designed to help meet those goals. Take our 3-minute quiz now, and we will match you instantly with an advisor based on your individual goals and risk tolerance!