Annuities for Growth
Growth Annuities allow investors to grow their investment amount (principal) without the risk of loss. Read on to learn more about growth annuities that can beat Bank CD rates, and determine which types are best suited to you.
Types of Growth Annuities
Fixed Annuities aka Multi-Year Guaranteed Annuities (MYGAs)
Straight forward guaranteed returns without the risk of loss. Typically a better performing alternative to bank CDs (certificates of deposit). No risk, low return. Learn more about Fixed Annuities.
Fixed Index Annuities (FIAs) for Growth
These annuities are tied to stock market index performance allowing for significantly greater upside potential while also offering downside protection against loss. This class of products was designed to outperform MYGAs, while also protecting principal. Learn more about Fixed Index Annuities.
Structured Variable Annuities
Also known as buffer annuities, these products offer potentially more upside than Fixed Index annuities, but with slightly less downside protection. They are sold as securities. Learn more.
For whom are growth annuities
Retirees, or those within 15 years of retirement, that still want to grow their wealth, but do so without risk choose growth annuities. Investors typically move their assets from higher risk investments such as equities and 401k to growth annuities as they near retirement.
How Do Growth Annuities Work?
Money is invested for a set period of time and interest is accrued annually. MYGA contracts typically range from 2 to 15 years and some allow for an annual distribution of interest earned. Fixed Index Annuity contracts typically range from 5 to 10 years.