Financial markets have their ups and downs, bringing about uncertainty. But in prepping for retirement, reliability might be appealing to you. When people talk about stable financial products, you may hear: What is a Fixed Annuity?

 A Fixed Annuity is an insurance contract that offers guaranteed, predictable growth at a set interest rate, protecting your principal from market downturns and providing a reliable income stream, similar to a Certificate of Deposit (CD) but with tax-deferred growth and payout options for life or a set term. It works in two phases: an accumulation phase where funds grow with fixed interest, and an income phase where you receive guaranteed payments, making it popular for conservative retirement planning.  Fixed annuity interest rates are generally higher than with traditional savings vehicles and unlike other types of annuities, most fixed annuities don't charge annual fees.

• Guaranteed Interest: Earns a minimum interest rate, often guaranteed for several years, with rates potentially resetting but never falling below the minimum.
• Tax-Deferred Growth: Earnings aren't taxed until you start taking withdrawals, which defers taxes until retirement.
• Principal Protection: Your initial investment and accumulated interest are safe from stock market volatility.
• Guaranteed Income: Provides a predictable, steady income stream during retirement, which can be for life or a specific period.
• Issued by Insurers: Backed by the financial strength of the insurance company, not the market.

LPL Financial has agreements with the strongest and highest rated Insurance carriers in the world. The only way they can be on our platform is if they are rated A or better. Our clients always come first so it is imperative that every insurance company honors their core oblations to provide the promised dividend and income stream while managing the risk of the annuitant outliving their savings, and always backed by strict state regulations requiring suitability and transparency.