A fixed rate annuity is a great tool that can be used as part of a retirement strategy. Simply put, annuities are insurance products allowing you to put aside money, have it increase each year without paying taxes, and then trigger a stream of payments on a timeline you can control. The payments are taxed as ordinary income. Unlike IRAs, there is no income limitation in how much money you can contribute. Other benefits of an annuity from Connection Bank include:
- Higher rates than traditional CDs and IRAs
- No taxation on annual interest
- No service charges or fees
- Accessible beginning at age 59.5
ANNUITIES ARE NOT FDIC INSURED - NOT A DEPOSIT - NOT GUARANTEED BY THE BANK - NOT INSURED BY ANY GOVERNMENT AGENCY - MAY LOSE VALUE
