How Much Do Annuities Earn?

1. 

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   Ted Ratliff

   Owner, SFS Associates,

   It depends on a lot of factors.  If it a simple annuity then the guaranteed interest rate will be spelled out in the policy.  An indexed annuity will depend on the stock index environment.  If the market is up, you benefit from higher interest rates based on the formula in your policy.

   Answered on June 6, 2013

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2. 

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   Ronald Hinch

   Regional Marketing Director, Capital Choice Financial Group,

   There are many annuities on the market today and each present different ways to calculate interest rates. If it is a fixed annuity then the rate is fixed by the company. If it is a fixed indexed annuity then the rate is indexed to the marked in some way. A bonus annuity will give a higher first year interest rate. As an agent, I don't want to confuse or entice my clients to purchase from a bonus or a higher interest illustration. I will ask when you will need the money and if you want a guarantee of income for life. Then, we will look at the possibilities.

   Answered on April 11, 2016

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