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Fixed annuities — the right choice for your customer?

Fixed annuities can help your customers prepare for retirement and achieve financial security. Benefits such as safety of principal and tax deferral are just a few of the reasons annuities appeal to customers who are concerned with having greater control over their finances. Keep these important points in mind:

  • Presenting solutions should always follow thorough profiling.

  • Before you recommend a First SunAmerica product, you are required to consider who is suited for a fixed annuity and evaluate whether it would be an appropriate purchase for your customer.

Who is the typical fixed annuity customer? Back To Top

Fixed annuities may be a suitable choice for customers who:

  • Want an income they will not outlive.

  • Have long-term financial goals.

  • Contribute the maximum to their 401(k) or other qualified retirement accounts and are seeking other tax-deferral options.

  • Seek a safe financial product that offers safety of principal and a guaranteed minimum interest rate.

  • Have sufficient income for their living expenses and wish to defer a certain portion for estate-planning purposes.

  • Own a diversified portfolio with sufficient liquidity and want to lock in extra income.

 

Disclosure advantages and disadvantages Back To Top

Your customers rely on you to help them make sound fixed annuity decisions. Ensure every customer is aware of and considers all of the advantages and disadvantages of fixed annuity products. Fixed annuity products:

  • Offer tax-deferred growth of earnings only until withdrawal.

  • Provide greater security — but typically lower earnings compared to variable annuities, mutual funds or stocks.

  • Are generally designed to achieve long-term rather than short-term investment goals.

  • Trigger withdrawal penalties for early withdrawals; and a 10% tax penalty on withdrawals taken prior to age 59½.