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The 3 kinds of deferred annuities. (Video 2 of 4 in this series.)

✅ In this video #2 in our 4-part series, we’re going to talk about the three kinds of deferred annuities.

✅ They’re deferred because once we make our initial investment into the annuity, we decide when we want to start receiving a guaranteed income stream from an insurance company. 

✅ To be considered deferred, it probably means you want to wait at least a year before accessing that income (in which time your money can grow).

✅ There are 3 types of deferred annuities:

1. ✅ Fixed Deferred Annuities

The insurance company promises to give you a certain percentage of return, such as 3%, as your money grows (with compounding) annually. 

So, if you invested $100,000 into a Fixed Deferred Annuity, after one year you would have $103,000 no matter what.

2. ✅ Fixed Index Annuity

With a Fixed Index Annuity, you cannot lose your base or principal investment – it’s really that safe. And you still can enjoy some rate of return, such as up to 5% for example.

But you are still tied to an index or the S&P 500 so your performance still has an upside for growth.

But that upside is capped, and growth cannot be over 5% in this case, no matter how much the market thrives. But if the market drops, you don’t lose.

With our $100,000 scenario, if the market went up 15% (and your annuity was capped at 5%), you would end up with $105,000 after one year.

But if the market went down 50%, you wouldn’t lose one penny.

This is for people who want 100% safety but also some upside and return that’s better than a CD or similar unspectacular investment.

3. ✅ Variable Annuity

Variable Annuities are tied directly to a certain index or the S&P 500. They closely resemble mutual funds in that the annuity lives or dies with the performance of the stock market.

There is far more risk as no protections exist if the market goes down, but a much higher upside since there is no cap on growth if the market goes up.

✅ Annuities are a fantastic way to ensure that you’ll have enough money to live on until the day you die, no matter what the stock market, the economy, or our pensions and Social Security, etc. are doing. 

✅ Look for more information about annuities in the next three parts of this series. For more information on annuities, please contact me: 


Phone: 510-229-7608 

-Jason Matthews

Your Financial Guru