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Annuities

Let’s find out if an annuity could be a right fit for you.

YOU HAVE QUESTIONS. WE HAVE ADVICE.

Which Annuity is Right for Me?

Simply put, annuities are contracts that life insurance companies issue. They have been around for years, and there are several different types.


You may have heard about annuities from a friend or perhaps you have heard someone like Ken Fisher talking about annuities on TV. As there are different types of annuities, there are some misconceptions which warrant clarification.



We’ll break annuities down by type and explore the highlights of each. Your unique needs and objectives will determine if an annuity is right for you and which one to use.

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Fixed Annuities

  • Similar to a bank CD, interest is credited annually and the funds are locked in for a set period of time.
  • They normally pay a small fixed percentage for three, five, or seven years.
  • Interest earned can be more than a bank CD, but it typically less than an average stock market investment.
  • There are no additional administrative fees.

Fixed Indexed Annuities

  • This type does not guarantee the interest earned but the annuity’s performance is based on the growth of an external index.
  • If the index is positive you are credited interest based on your participation in the index.
  • However, when the index is negative you do not lose money. Your principal is locked in annually and does not directly participate in the stock index.

There are two types of Fixed Indexed Annuities

Fixed Indexed “Accumulation” Annuities

  • Geared to accumulate but will not experience loss of principal.
  • Fees are calculated into premiums payments.
  • Attempts to earn 5% to 7% per year.

Fixed Indexed “Income” Annuities

  • This type has a rider that guarantees growth.
  • Guaranteed to grow from 4% to 7%.
  • Has two values. The Accumulation Value and the Rider Value
  • Rider Value that will grow consistently no matter what is happening in the markets.
  • The income rider will incur an additional fee.

The Rider Value

The Rider Value is designed for one thing: To create income that you can never outlive.


Annuities are long-term financial vehicles that may be subject to restrictions, surrender charges, holding periods, or early withdrawal fees which vary by carrier. Riders are generally optional and have an additional associated cost. Annuities are not bank or FDIC insured.



Social Security is an annuity. The government guarantees a certain amount of money to be paid to us based on what we have earned in our working career. Social Security is an income floor. We can use an Income Annuity to increase our income floor in retirement, and if you live to a very old age, there is no chance of running out of money.

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Variable Annuities

  • Principal is invested in the stock market and you can lose money.
  • Have higher growth potential.
  • Variable annuities have fees outside of the initial contract premiums.
  • Are a complex contract that can be difficult to understand.

If you’d like discuss if an annuity is right for you please use this link to schedule a time to speak with David Treece.


During this initial no obligation call, David will answer your questions and explain more details.


We are located in Spartanburg, SC and we love connecting with clients at our office, but we work with clients all over the country. We’d be happy to schedule a Zoom video call to discuss your goals and objectives.

Request a Complimentary Call from David
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