Annuities in Brighton, MI

Annuities can be a complicated topic, but understanding these financial instruments and how they can contribute toward your future prosperity is a worthy investment of your time. By purchasing the right annuities, you can bolster your portfolio and cultivate the means to secure reliable and valuable income down the road. At Active Insurance Agency, our dedicated team has the knowledge and experience to help you approach these matters.

How Do Annuities Work?

Annuities can generally be seen as investments in your future. You can purchase annuities as a single, lump sum payment or you may also be able to contribute periodically over time. Regardless, these funds are then able to accrue value over time. Through a process called annuitization, you can eventually cash out your investments and arrange to receive regular payments for a specific period or even throughout the remainder of your lifetime.

What Are the Different Types?

When shopping for annuities, you should make sure that your selections align with your financial situation and future goals. Although there may be many subsets, many annuities fall under the following primary classifications:

• Fixed annuities establish a guaranteed interest rate and will not dip in value below your original investment. This makes them a safer choice, albeit with limited growth potential.

• Variable annuities gain and lose value with the stock market, creating higher potential returns. However, by tying your investment to market performance, you take on greater risk.

• Indexed annuities can offer a middle ground between fixed and variable options. They include a minimum growth rate and can gain additional value through a market index (e.g., the S&P 500 or NASDAQ 100).

How Much Do They Cost?

When purchasing and maintaining annuities, you’ll typically need to pay various fees in addition to providing your initial investment. These may include upfront commissions (e.g., up to 8% of your total investment) and ongoing fees to maintain your annuities. Variable annuities may often carry higher fees than other types.

We’re Here to Help

Contact Active Insurance Agency today to learn more about annuities and select appropriate investments for your family’s future.