More myths swirl around annuities than any other financial product. Some of the confusion is due to the fact that annuities have changed over the years, offering more options and benefits than ever. From variable annuities to fixed annuities, Annuity Genius prides itself on being able to consistently identify the most competitive consumer based products in the industry. Consumer based means; they are the best products for you and not necessarily for us as the agent.

One of the most flexible types of annuities is a fixed indexed annuity (FIA). A FIA is a financial product that’s sold by insurance companies. It’s important to understand the FIA facts as it relates to these 3 common myths:

1. If you have a retirement account you don’t need an annuity. False! One of the major benefits you can get from a fixed indexed annuity is the guarantee that you’ll never run out of money during retirement. You’re not guaranteed this with a 401(K).

2. All annuities charge high ongoing fees. False! The only time you’re charged a fee with a fixed indexed annuity is when you choose to add an optional policy rider.

3. Annuities are too complex for the average person. False! An annuity is simply a contract you make with an insurance company get financial benefits in the future, such as during retirement. When you buy a fixed indexed annuity, you set aside some of your retirement savings in return for a future stream of income from that pool of money.