# Fixed and Indexed Annuities | Triumph Wealth Group > Fixed, fixed indexed and income annuities without the sales theater. Compare caps, riders and surrender terms before you commit a dollar. Canonical page: https://triumph-wealth-group.launchautomation.workers.dev/annuities # Income that arrives either way An annuity is not an investment strategy. It is a contract with an insurance company that trades some upside for a floor, and it is either the right tool for a specific job or it is the wrong one. There is very little middle ground. ## The first question is what the money is for The job is usually one of two things: protecting a balance you cannot afford to rebuild, or turning that balance into a paycheck that keeps arriving. It keeps arriving however long you live and whatever the market does the year you retire. ### Fixed annuities A stated interest rate for a stated term. Predictable, boring, and genuinely useful for money that has a job to do inside a known window. ### Fixed indexed annuities Credited interest linked to an index, with a floor that prevents a negative year and a cap or participation rate that limits the upside. The cap is the price of the floor and you should see both numbers before you sign. ### Income annuities and riders Contracts designed to pay a defined amount for life. This is longevity insurance: it solves the risk of outliving your money, which is the one risk you cannot diversify. ### Existing contract reviews If you already own an annuity, bring the statement. Surrender schedules, rider fees and caps that reset annually are the three things owners most often do not know about their own contract. ### Book a strategy session Spend 30 minutes discussing your goals, priorities, and current financial picture. We'll help you identify opportunities, answer your questions, and outline clear next steps based on what matters most to you. ### Not ready to talk? Start with a free education session instead. No application, and no follow-up unless you ask for one. ## The same five steps, every time ### Discovery A real conversation about income, obligations, timeline and what you are actually afraid of. No product is mentioned. Nothing is sold. Roughly 30 minutes. ### Analysis We map what you already own, where the gaps are and what each dollar is currently doing. You get the picture in writing, including the parts that are working fine. ### Design Two or three routes, side by side, with the trade-offs written down. Guarantees, liquidity, tax treatment, fees and the scenario where each one underperforms. ### Implementation Applications, underwriting, transfers and beneficiary designations handled end to end, with a named person you can call instead of a service queue. ### Annual review Income changes, tax law changes, families change. The strategy gets re-examined every year and adjusted rather than left to drift for a decade. ## What should you know about annuities? ### What is an annuity? An annuity is a contract between you and an insurance company. You place money with the carrier, and in return the carrier agrees to credit interest, protect principal, pay you an income, or some combination, according to the terms written in the contract. Annuities come in several types with very different risk profiles. The guarantees inside any annuity are backed by the claims paying ability of the issuing insurance company. ### What is a fixed annuity? A fixed annuity credits a rate of interest declared by the insurance company for a stated period. Your principal is not exposed to market losses, and you know the crediting terms before you sign. A multi year guaranteed annuity, often called a MYGA, is the version that locks the declared rate for the full term. Rates change frequently and vary by carrier, so any figure we show you comes straight from the carrier. ### What is a fixed indexed annuity? A fixed indexed annuity is an insurance contract whose interest credits are tied to the performance of a market index, with a floor that protects your principal from index losses. You are not invested in the index and you do not own shares. In exchange for that protection, the upside is limited by contract features such as caps, participation rates, or spreads. Those limits vary by carrier and can change over time. ### What is the difference between a fixed annuity and a fixed indexed annuity? A fixed annuity pays a declared interest rate you know in advance. A fixed indexed annuity ties your interest credits to an index instead, so the amount credited varies year to year and can be zero in a down year, though index losses do not reduce your principal. Fixed is predictable. Indexed trades some of that predictability for the possibility of more interest. Which one fits depends on what the money is for. ### What is the difference between a fixed indexed annuity and a variable annuity? The biggest difference is risk to principal. A variable annuity puts your money into subaccounts that rise and fall with the market, so the account value can drop. A fixed indexed annuity protects principal from index losses and limits upside in exchange. Variable annuities are securities and require a securities license. We do not hold one and do not offer them, so we speak only to the fixed and indexed side. ### What is the difference between an immediate annuity and a deferred annuity? An immediate annuity starts paying you income shortly after you fund it. A deferred annuity holds the money first and begins income on a future date you choose. People who need a paycheck right now look at immediate contracts. People still a few years out more often use deferred ones, which also leaves room for the value to grow. The right choice comes down to when you need the income to start. ### How does a fixed indexed annuity earn interest? Interest is calculated at the end of each crediting period by measuring the change in the linked index and applying the crediting method in your contract. If the index is up, interest is credited subject to a cap, a participation rate, or a spread. If the index is down, the credit is zero rather than a loss. Dividends are generally not included. Every one of those terms is spelled out in the contract. ### Can I lose money in a fixed indexed annuity? Index losses do not reduce your principal, and that protection is the core design of the product. You can still end up with less than you put in for two reasons: withdrawing during the surrender period, which triggers a surrender charge, and optional rider charges deducted from your value. A zero interest year is also possible. Contract guarantees rest on the claims paying ability of the issuing insurance company. ### What fees does an annuity have? It depends on the contract, which is why the question deserves a real answer rather than a slogan. Many fixed and fixed indexed annuities carry no explicit annual fee taken from the account value. Costs typically show up as surrender charges during the early years and as an annual charge on any optional rider you elect. Variable annuities work differently. We point you to the fee page in the actual contract. ### What is a surrender charge? A surrender charge is a penalty the insurance company applies if you take out more than your contract allows during the surrender period. The charge is a percentage of the amount withdrawn and it generally declines each year until it reaches zero. Surrender periods run for a set number of years defined in your contract. This is the single most important number to understand before signing, and we cover it every time. ### Can I get my money out of an annuity if I need it? Most annuity contracts allow a penalty free withdrawal of a set percentage of your value each year after the first contract year. Beyond that amount, surrender charges apply until the surrender period ends. Many contracts also include provisions for events such as nursing home confinement or terminal illness. An annuity should never hold money you may need in an emergency. We size the contract around what you can comfortably leave alone. ### What is an income rider? An income rider is an optional feature you can add to some annuities to create a stream of income you cannot outlive. It usually carries an annual charge, and it tracks a separate benefit value used only to calculate the income, not a cash value you can withdraw. That distinction confuses a lot of people. If you do not need lifetime income, a rider may be an expense you simply do not need. ### How are annuities taxed? Growth inside an annuity is generally tax deferred until you take money out. How a withdrawal is taxed depends on whether the contract sits inside a retirement account or was funded with after tax money, and an early withdrawal penalty can apply below the age set by current IRS rules. Triumph Wealth Group is not a tax firm, so we explain how the contract works and leave the calculation to your CPA. ### What happens to my annuity when I die? Whatever remains passes to the beneficiaries named in the contract, and it generally avoids probate because a beneficiary is already on file. A surviving spouse can often continue the contract as the new owner. Non spouse beneficiaries have different options and different tax consequences under current rules. Some payout elections stop at death while others continue, which is why the option you choose matters. Keep your beneficiary designations current. ### What backs the guarantees in an annuity? Guarantees in an annuity are backed by the claims paying ability of the issuing insurance company. They are not FDIC insured and they are not guaranteed by the federal government. That makes the financial strength of the carrier a real part of the decision, and we review independent strength ratings with you. Every state also has a guaranty association providing limited protection, subject to statutory limits that vary by state. ### Are annuities a ripoff? Annuities get that reputation from three real problems: products sold to people who did not need them, surrender periods that were never explained, and charges buried in a rider nobody read. The product itself is a contract, and a contract is only as good as its fit and its disclosure. Our answer is to hand you the surrender schedule and the fee page before you decide. Read them. If it does not fit, walk. ### What is the catch with a fixed indexed annuity? The trade is liquidity and upside in exchange for protection. Your money is committed for the length of the surrender period, so it is not emergency cash. Your interest is limited by a cap, a participation rate, or a spread, which means you will trail a strong bull market. Some years credit zero. If those three things are acceptable to you, the product does what it says it does. ### Who should not buy an annuity? Anyone who may need the money soon should not tie it up in an annuity. That includes people without a separate emergency fund, people expecting a major expense during the surrender period, and people who want full market upside and can stomach the losses that come with it. Very short time horizons and unstable income are other reasons to pass. If that describes you, we will say so on the first call. ### Who is a fixed indexed annuity best suited for? Fixed indexed annuities tend to fit people near or in retirement who want a portion of their money protected from market losses and are comfortable leaving it alone for the length of the surrender period. It is usually one part of a plan, not the whole plan. Someone covering an income gap, or protecting money they cannot afford to lose, is the common case. Suitability is reviewed contract by contract. ### How much money do I need to buy an annuity? Every carrier sets its own minimum, and those minimums vary widely from product to product. Some contracts open with a modest amount and others are built for larger balances. The more useful question is how much of your savings should go into any one contract, and the answer is never all of it. We look at your reserves and income needs first, then size the contract around what is left. ### Do you earn a commission when someone buys an annuity? Yes. The insurance company pays Greg a commission when a contract is placed, which is why reviews and illustrations cost you nothing. That commission comes from the carrier and is not deducted from your premium as a separate line item charge. You should ask this question of anyone who shows you an annuity, and be wary of anyone who avoids answering it. We will tell you how any product pays. ### What is a free look period? A free look period is a window after you receive your contract during which you can cancel it and get your money back. The length is set by state law and by the contract, so it varies. It exists so you can read the actual document at your own kitchen table instead of deciding in a meeting. We encourage people to use it. If the contract does not match what you were told, cancel. ### What is the process to get information on an annuity? Call (620) 717-8517 or use the contact form and tell us what you are trying to solve. We ask about your age, your state, the money you are considering, and when you would want income. Then we request current information from carriers and go through it with you, including the surrender schedule and any rider charges. Nothing is signed and nothing is owed. Most people take the material home first. ### How do I get an annuity quote or illustration? Quotes and illustrations come from the insurance carrier, and we request them for you at no cost. Only a few facts are needed: your age, your state of residence, the approximate amount, and your target income date. The illustration shows guaranteed elements and hypothetical ones, and we walk you through which is which. Ask for it in writing so you can read it without anyone sitting across from you. ### How long does it take to set up an annuity? Applications are often completed in a single sitting, and the contract can be issued within days when the funding is straightforward. The timeline stretches when money has to move from another institution, since a rollover or an exchange of an existing annuity travels at the pace of the releasing company and commonly takes a few weeks. Your free look period does not begin until the contract is delivered to you. ### Can I buy an annuity through you if I live outside Kansas? Greg is licensed in Kansas, Missouri, Oklahoma, Texas and Florida, and we can help you if yours is among them. Triumph Wealth Group is based in Columbus, Kansas and works across southeast Kansas in person, with clients in the other states by phone and video. Annuity contracts are approved state by state, so what is available where you live may differ. Call (620) 717-8517 and we will confirm your state before anything else moves. ## The other three pillars These are not competing products. They solve different problems, and which ones you need depends entirely on what your money is being asked to do. ### Retirement and Wealth Strategies Retirement income, tax-advantaged accumulation, rollover and qualified plan strategy, education funding, and protection built around your time horizon. ### Life Insurance and IUL Term, participating whole life and indexed universal life, designed for the job you are hiring the policy to do rather than the commission it pays. ### Financial Education Workshops, one on one sessions and plain-language breakdowns, because a strategy you do not understand is a strategy you will abandon in the first bad year. ## Start with a conversation, not a recommendation. Bring what you already own. Statements, policies, plan documents. You will leave with a written picture of where you stand whether or not you ever work with us. --- Triumph Wealth Group, an independent financial services practice in Columbus, Kansas, run by Greg Baird. Retirement strategies, annuities, life insurance and IUL, and free financial education. Greg Baird (620) 717-8517, gregbaird.gfi@gmail.com. Monday to Friday, by appointment. Central time. Important disclosures: Triumph Wealth Group provides financial education and insurance services. This website is for educational purposes only and is not financial, tax, legal or investment advice. Guarantees are backed by the claims-paying ability of the issuing insurance company. Policy loans and withdrawals reduce cash value and death benefits. Dividends are not guaranteed. Past performance does not indicate future results. 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