Annuities
Understanding Annuities
An annuity is a contract between you and an insurance company. You put money in either as a lump sum or over time and in return you receive guaranteed income, either immediately or at a future date. For people planning retirement, annuities can be one of the most reliable ways to make sure you don't outlive your money.
Types of Annuities
Fixed Annuity
A fixed annuity guarantees a set interest rate for a defined period. Your money grows predictably, with no exposure to market swings. When the accumulation period ends, you can convert to a stream of income payments or roll into another product.
Best for: conservative savers who want certainty above all else.
Fixed Indexed Annuity
A fixed indexed annuity (FIA) ties your growth potential to a market index — like the S&P 500 — but with a floor that protects you from losses when the market drops. You don't participate directly in the market, so the upside is capped, but you also never lose principal due to market performance.
Best for: people who want more growth potential than a fixed annuity but aren't comfortable with full market risk.
Who Should Consider an Annuity?
Annuities tend to be a strong fit if you:
Are within 5–15 years of retirement and want to lock in growth safely
Are concerned about outliving your savings
Have already maxed out your 401(k) and IRA contributions and want additional tax-deferred growth
Want a guaranteed income stream you can't outlive
They're generally not the right tool if you need liquidity in the short term, since most annuities have surrender periods.
Why Work with Serot Group?
We're independent, so we can shop across multiple carriers to find the most competitive rates for your situation. Annuity rates vary significantly by carrier and change frequently. Working with an independent advisor means you get a real comparison, not just what one company is pushing.