Annuities & Safe Money — Prosperity Life & Financial Solutions

What Are Annuities?

An annuity is a contract between you and an insurance company. You contribute a lump sum, and in return the insurer provides specific guarantees — a locked-in interest rate, protection from market losses, a guaranteed income stream, or a combination of all three.

Unlike stocks or mutual funds, fixed and fixed indexed annuities guarantee you will never lose principal due to a market downturn. That makes them one of the few tools that offer both growth potential and downside protection in the same product.

Annuities are insurance products — not investments. Guarantees are backed by the financial strength of the issuing company. Loretta works with multiple highly-rated carriers to find the best fit for your situation.

Types of Annuities

Fixed Annuities

Earn a guaranteed, locked-in interest rate for a set period. Principal is fully protected. Simple, predictable, and one of the most conservative safe money options — similar to a CD but with tax-deferred growth.

Fixed Indexed Annuities

Interest is credited based on a market index (like the S&P 500) with a 0% floor — you participate in market gains but are fully protected from losses. Often includes optional riders for guaranteed lifetime income.

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Income Annuities

Designed to create a guaranteed income stream for life or a set period. Contribute a lump sum and receive monthly income starting immediately or at a future date you choose.

Why People Consider Annuities

Annuities offer a unique combination of protection, growth, and guaranteed income — making them a powerful tool for retirement security.

✔ Principal Protection

Fixed and indexed annuities guarantee your savings will never decline due to market losses — no matter what the stock market does.

✔ Guaranteed Income for Life

Convert a lump sum into a predictable monthly paycheck that continues for as long as you live — regardless of market conditions.

✔ Tax-Deferred Growth

Earnings grow tax-deferred until you take withdrawals — allowing your money to compound faster than in a taxable account.

✔ Peace of Mind

Knowing a portion of your retirement savings is fully protected and earning a predictable return lets you stop worrying about market swings.

How Loretta Helps

As an independent advisor, Loretta is not tied to any single insurance company. She compares options across dozens of highly-rated carriers — evaluating caps, participation rates, surrender periods, income rider terms, and financial strength ratings side by side — so you get the product that genuinely fits your needs, not just whatever one company offers.

She explains everything in plain English, without jargon or pressure. If an annuity is not the right fit for your situation, she will tell you that too. Her goal is your long-term financial security, not a sale. Learn more about Loretta.

Frequently Asked Questions

With fixed and fixed indexed annuities, you cannot lose money due to market performance. Your principal is contractually protected. You can incur charges if you withdraw funds during the surrender period above the free withdrawal amount (typically 10% per year). Loretta focuses on fixed and indexed products for clients seeking safe money strategies.

A fixed indexed annuity (FIA) credits interest based on a market index — such as the S&P 500 — subject to a cap or participation rate. When the index rises, you receive a portion of that gain. When it falls, you earn 0% — your principal stays intact. FIAs also commonly offer optional income riders for guaranteed lifetime income starting at a date you choose.

For the right person, yes. Annuities with income riders can provide a guaranteed monthly payment for life, regardless of market conditions or how long you live. For retirees without a pension, this fills a critical income gap. Whether it fits your situation depends on your income needs, timeline, and overall financial picture — which is exactly what a free review with Loretta can help you assess.

Earnings in a non-qualified annuity (purchased with after-tax dollars) grow tax-deferred. When you take distributions, the earnings are taxed as ordinary income; your original principal is returned tax-free. For qualified annuities (held inside an IRA), all withdrawals are taxed as ordinary income. Withdrawals before age 59½ may also incur a 10% IRS early withdrawal penalty.

A surrender charge applies when you withdraw more than the free withdrawal amount (usually 10% per year) during the surrender period, which typically ranges from 5 to 10 years. The charge starts higher and steps down to 0% by the end of the period. The key is to only place money you will not need access to during that window.

No. Annuities work best for the portion of your savings you want to protect and generate guaranteed income from. You still need liquid savings for emergencies and growth-oriented assets to keep pace with inflation. The goal is a balanced income plan where each dollar has a purpose — annuities fill the role of protection and guaranteed income within that plan.

Protect Your Retirement from Market Losses — While Creating Guaranteed Income for Life