Broker Check

FIXED RATE OPTIONS

| January 19, 2024

Are you concerned about retaining your principal and not losing value due to market fluctuation?  Do you have cash that is not earning enough to potentially keep up with inflation?  Would like to possibly reduce your income taxes on the interest you earn?

If these are concerns to you, then you might consider a Delaware Life Fixed Annuity or Fixed Index Annuity.  Both offer no risk to principal due to market fluctuation, defer taxes on interest earned while allowing access to 10% of your account without penalty should you need some of the funds you invested.

Delaware Life's Fixed annuity offers a 3-year option at a competitive rate currently at 4.95% for under $100,000 and 5.25% for accounts over $100,000.  This could be a good way to lock in a high interest rate before the fed potentially lowers interest rates.

Delaware Life's Fixed Index's fixed account is currently a range 4.55% to 5.10% along with a minimum of 3% regardless of what the Fed does with rates.  In addition, you can add to the account without increasing the holding period.  So for example if you open a 5-year account with $30,000 and in 3-years you want to add to the account at the end of 5-years all the money would be out of surrender.

If you would like to discuss this or any other options, please give me a call at 630-235-5273 or email me at mflanagan@flanaganfinancialservices.net


DELAWARE LIFE FIXED ANNUITY

DELAWARE LIFE'S FIXED INDEX OPTION

  • Annuities are generally considered long-term investments. They are intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed indexed annuity is not a registered security or stock market investment and does not participate directly in any stock or equity investment or index. Annuities are not deposits of or guaranteed by any bank and are not insured by the FDIC or any other agency of the US. All guarantees are solely backed by the financial strength and claims paying ability of the issuing insurance company. Insurance products, including annuities, are offered through (Rep Name), a licensed insurance agent in the state(s) of (State(s). An income rider or benefit is an additional feature available with some annuities and generally optional and comes with additional cost. Income benefits are designed to provide income options above and beyond the standard annuitization or free withdrawal features in annuities. Please note the application of surrender charges could result in a loss of principal, the minimum guaranteed return may be 0% and investment return based on market increases may be capped. The guaranteed account value of a fixed-indexed annuity only applies if the annuity is held until the end of the contract term and that loss of principal is possible if the annuity is surrendered before the end of the contract term. Any distributions may be subject to ordinary income tax and, if taken prior to age 59 ½, could cause an additional 10% federal tax.