Annuity Services

Why Choose an Annuity?

When it comes to retirement, Social Security and your 401(k) plan don’t always cover you throughout your retirement.

If you’re planning for retirement, you might want to also consider opening an annuity.

Annuities are long-term investments that help protect you in retirement should you outlive your income.

You can open an annuity with an insurance company or nonprofit agency, which distributes payments back to you.​


There are different types of Annuities.

Some are designed for accumulation and growth; while others are designed to maximize Retirement income.

Fixed Annuities provide a safe alternative to bank CD’s.

It’s very important to select the right type of Annuity for your situation.

Fixed VS Variable Annuities

When you open an Annuity, you can choose between two major types: Fixed and Variable

Fixed Annuities pay out equal amounts while Variable Annuities can change with investment performance.

Fixed Annuity

When you sign up for a Fixed Annuity, you agree to a certain interest rate that determines your future payouts.

For example, if you invest $1,000,000 in a Fixed Annuity with a 3% rate, you will receive annual payments of $30,000.

The rate you agree upon at opening will remain the same for the duration of your Annuity.

While this does make for more certainty, the rate of inflation may outpace your rate of return, effectively lowering your purchasing power.

Equity-Indexed Annuity

There is also the Equity-Indexed Annuity. This is a specific type of Variable Annuity.

An equity-Indexed Annuity provides some of the stability of a Fixed Annuity while allowing for a Performance-based payout.

Instead of choosing a specific portfolio, your Annuity is tied to a benchmark index, usually the S&P 500.

This links your returns to the stock market’s performance as a whole.

An Equity-Indexed Annuity also guarantees a minimum return even if prices fall, reducing the risk of a typical Variably Annuity.


Annuities offer a great option for additional Retirement savings.

You have a variety of options available to you as you open an account.

Your Choices should depend on your retirement and financial status.

Don’t forget to keep track of your Annuity’s tax benefits, fees and risks.

That way, you can avoid high fees and only benefit from your account.

Contact Woodyard Insurance Group LLC.