Key Highlights
- Great American gives you many fixed index annuities to help with different retirement needs.
- Fixed index annuities have a market value adjustment and let growth go along with market value. You get growth if the market does well, but without taking on direct market risk.
- Some choices, like SecureGain 7 and American Legend 7, let you pick when to take out money and how you want to get paid income.
- The features include options like lifetime income, income riders, and even immediate annuities, so you can feel safe with money when you retire.
- There is something for every budget because you can start your annuity with as little as $10,000.
- Great American has a strong name for doing good work and has held an A.M. Best “A” rating for over 40 years.
Introduction
Planning for retirement can be a lot to take in. It gets even harder when you have a lump sum and want it to last for your financial security. Great American’s fixed index annuities are made to meet your unique needs. These annuities, backed by providers like MassMutual Ascend, help you make a plan by mixing safe growth with flexible payout choices. It does not matter if you want stability with strong interest rate promises or want lifetime income; these top-rated products give flexible and reliable ways to move forward and feel good about your financial future.
Understanding Fixed Index Annuities
Fixed index annuities, called FIAs, can be a good way to plan for retirement. Unlike a traditional annuity, FIAs link what you earn to a market index, like the S&P 500. This set-up means there is room for higher interest rate earnings. At the same time, your money is never out on the market, so you do not have to worry about big market value drops. This makes FIAs a safe choice for people who want some growth but do not want to take on too much risk. Many like this product because it mixes both safety and the chance to grow your money.
FIAs also help protect you when financial markets swing up and down. They help keep your main money safe and also give you a minimum interest rate, even when the markets are down. There are features like market value adjustment and many ways to get paid, so an FIA can help with both growing your retirement money or paying out soon. Because of their security and the freedom to choose, FIAs are seen as a strong option for people thinking about their future money plans. Let’s look closer at how these annuities work as an investment tool.
What is a Fixed Index Annuity?
A fixed index annuity is a contract you make with an insurance company. The money you put in earns a fixed interest rate and can also grow as the market index goes up. Your returns depend on how the index does, but your money is not actually put in the market. This means you do not risk losing your main amount if the market goes down. With this mix of safety and growth, a fixed index annuity is a good choice for people thinking about retirement savings.
One key part of this contract is the market value adjustment. If you take money out before the contract term is up, the amount you get may change. This is because the market value adjustment looks at things like interest rates and the condition of the market. It might lower your payout if you leave early, but it helps keep the income payments stable for people who stay for the full term.
Fixed index annuities focus on keeping your money safe and growing slowly over time. This makes them fit well for many retirement plans, from building your savings to making sure you get regular income payments when you retire.
Benefits of Choosing Fixed Index Annuities
Fixed index annuities have many good features for different retirement goals. If you want regular income that lasts as long as you live, these annuities include lifetime income choices. So, you will keep getting income payments for your whole life. Income riders are also there to give extra flexibility. They help your plan fit your own timeline and unique needs.
Another main point is that these annuities come with a range of payout options, like immediate annuities. With these, you can get income payments soon after you put in your money. This makes sure you have steady cash when you need it most. You also get flexible withdrawal rules, so your annuity can adjust to new money needs as things change.
There is another advantage. FIAs keep your money safe from ups and downs in the market and make sure you get a guaranteed minimum interest rate. You get steady growth, promise of income, and protection from sudden market drops. This makes fixed index annuities a strong choice if you want to make your retirement plan better. Now let’s talk about some top Great American fixed index products.
Top Great American Fixed Index Products
Great American has a range of strong fixed index annuities. Each one is made to help you reach different money goals. The SecureGain 7 Fixed Annuity gives you steady growth with extra help from interest rate bonuses. The American Legend 7 is good if you want to have options because it offers more than one indexed strategy. Both of these annuities can fit long-term retirement plans. They come with features like withdrawals without a penalty and lifetime income benefits.
These annuities show that Great American stands for high performance and doing the right thing with your money. This is backed up by their long track record. For over forty years, they have had an A rating from A.M. Best. This shows their strong focus on keeping your money safe.
Review of SecureGain 7 Fixed Annuity
SecureGain 7 Fixed Annuity gives the benefit of steady growth and some real flexibility. In the first contract year, you get a bonus 1% interest rate. After this, your base interest rate will go up by 0.25% each year, from year two to year seven. This way, your money keeps growing so you can have a steady income for retirement.
You also have helpful free withdrawal choices. In the first contract year, you can take out 10% of your original purchase payment. There is no market value adjustment or early withdrawal penalty. After the first contract year, it lets you take out 10% of what’s in your account each year, again without getting any penalty. This gives you flexibility, so if you have an emergency or just need money, it will be there.
SecureGain 7 offers choices for how you get paid, like a fixed period payout, a lifetime income, or getting paid with a joint survivor payout. With this mix of steady growth, helpful withdrawal options, and flexible ways to take out money, Great American is showing how they try to look out for the different needs of all their customers looking for a good annuity with no big worries about market value or changes in interest rates.
Insights into American Legend 7 Annuity
The American Legend 7 annuity from MassMutual Ascend lets you grow your money in different ways that follow how the market moves. You can put your money into options like the S&P 500 or SPDR Gold Shares. This helps you get better returns, but you do not deal with the market directly.
This annuity allows you to take out up to 10% of what you paid in each year during the first contract year without any penalty. On top of that, there is an income rider built in which gives you lifetime income that you can count on.
Here is a closer look at some key details:
| Feature | Details |
|---|---|
| Issue Ages | Qualified/Non-qualified: 0-85 |
| Purchase Payment Minimum | $10,000 |
| Indexed Strategies | S&P 500, SPDR Gold Shares |
| Free Withdrawal Limits | 10% annually without penalty |
The American Legend 7 is a good pick if you want slow and steady growth and the freedom to use your money. It is backed by MassMutual, which is a trusted provider.
Conclusion
In short, Great American Fixed Index Annuities bring together many good things. They help give you both some safety for your money and a way to help it grow. When you know how these annuities work, what the main benefits are, and about the best ones out there, you can choose what is right for your own financial goals. These annuities are good if you want steady income. They also help you grow your money and keep your risk low. Finding the best fixed index annuity can be simple. If you want to know more, just ask for a personal meeting. Your financial future can be better with the right annuity from Great American.
Frequently Asked Questions
How does a Fixed Index Annuity differ from other annuities?
Fixed index annuities let you get some growth from the market while keeping your main money safe. Your return comes from how an index does, but your money is not at risk if the market goes down. With this kind of annuity, you can also choose lifetime income payouts. There is the option for an immediate annuity too. That means you get good flexibility for your retirement needs. You do not have to worry about steep changes in market value, and you still have choices that work for you.
What are the potential returns on Great American Fixed Index Annuities?
Returns change based on the kind of product and the index strategies you pick. For example, in the first contract year with SecureGain 7, you get a 1% interest bonus. With American Legend 7, the indexed features are there to help your premium grow as the market grows. Great American works to offer strong interest rates for both IRA and non-IRA accounts.
What is a Great American Fixed Index Annuity?
A Great American Fixed Index Annuity is a retirement investment product that combines the benefits of fixed and indexed returns. It offers a guaranteed minimum interest rate while allowing potential growth linked to a stock market index, providing financial security and growth potential for retirees seeking stable income.