Annuities are one way to generate a lifetime income, save for retirement, and leave a financial legacy. However, there are three main types of annuities—fixed, variable, and indexed—so selecting the right one for you can get complicated.
A fixed annuity promises that you’ll earn a stated interest rate on your money, resulting in the same payout year after year. This type of investment is essentially risk-free. The insurance company assumes all the risks and guarantees that you’ll make the stated interest rate. Fixed annuities aren’t tied to the stock market in any way.
With a variable annuity, you can make either a lump-sum payment or a series of payments. The company agrees to make consistent payments to you immediately or at a specified future date. Variable annuities combine the elements of mutual funds, life insurance, and tax-deferred retirement savings plans. When you invest in a variable annuity, you can select from various mutual funds.
With an indexed annuity, you can take a one-time payment or a series of payments. The company will credit you the return calculated by the changes on a particular index, such as the S&P 500. It’ll also guarantee you a minimum return, though these minimums can vary from one company to the next.
Along with each of these main types, there are differences in accumulation, payout, and costs so before you talk with your financial professional, ask yourself:
What’ll I use this annuity for?
- If you’re retired or nearing retirement and need a consistent income, a fixed annuity might be the right choice
- If you’re building up for retirement, you might consider a variable annuity or an indexed annuity
- If you’re going to leave your annuity to your children or grandchildren, consider a variable annuity with a death benefit
Finding the right annuity can be a daunting task, given all the variables, so don’t do it alone. Call us, your trusted financial professional, at (540) 720-5656, and together let’s narrow the field down to the investment solution that’s right for you!
Adapted from Investopedia1
Investment advisory and financial planning services are offered through Alphastar Capital Management LLC (“Alphastar”), a SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser or investment adviser representative has attained a particular level of skill or ability. Additional information about Alphastar Capital Management, LLC is also available on the SEC’s website at adviserinfo.sec.gov. ILG Financial LLC and Alphastar Capital Management, LLC are separate and independent entities. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. ILG Financial LLC offers insurance products through individuals licensed to sell insurance. Comments regarding guaranteed returns or income streams refer only to fixed insurance products offered by ILG Financial LLC and, unless specifically stated, do not refer in any way to securities or investment advisory products offered by Alphastar. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company and are not offered or guaranteed by Alphastar.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.