A+ Annuities
Understand your choices and plan with greater certainty.
Pros and cons of each type
The three contracts built to produce income, and what each one costs you in access.
Income only
This is the original type of annuity going back to Roman Times. You give the insurance company your principal, and they pay you an income for 5–20 years or for life.
Income only
“Deferral” means putting off/deferring immediate income. Why? To get a higher rate of income later.
Income + principal protection
This type of annuity has gained significant popularity for IRA rollovers due to the fact that most people want to continue to own their principal AND receive income for life.
Growth, not income
High interest rates and/or index accumulation with no market risk and a high degree of safety.
No annual fee
Fixed-rate annuities are straightforward and simple. Currently, rates on the top-ranked FRAs run between 5% and just under 6%, locked in and guaranteed for 3 to 10 years. Longer terms tend to pay higher interest.
Rates quoted on this page are illustrative of the market at the time of writing and change frequently. Ask for current figures before making any decision.
No annual fee
FIAs can be used for income replacement or pure accumulation. When used for accumulation, growth is linked to an index, but with no risk of loss. To offset the cost of providing principal protection, the insurance company must mitigate your rate of growth with a “cap” or a “participation rate.”
FIAs provide room for growth without annual fees. They are different than Variable Annuities which typically have 2% to 4% annual fees.
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