FIXED ANNUITIES & MYGAS | SPRINGFIELD, NJ
Fixed Annuities: Guaranteed Growth Without the Market Rollercoaster
If you’re tired of watching retirement savings go up one year and down the next, fixed annuities offer something increasingly rare: guaranteed returns with zero market risk. Your principal is protected, your interest rate is locked in for the term, and you know exactly what you’ll have at the end.
Independent Annuity Broker | Serving NJ Residents | Family-Run Since 1982
IS A FIXED ANNUITY RIGHT FOR YOU?
Stability Over Chasing Returns
Many clients come to us saying the same thing: ‘I don’t need to chase returns, I just don’t want to lose what I’ve already built.’ Fixed annuities are designed for stability, principal protection, and reliable income planning, particularly for New Jersey pre-retirees and retirees who can’t afford another significant market loss.
- You're within a few years of retirement and can't afford another significant market loss
- You have money in low-yield savings accounts that isn't working hard enough
- You want a portion of retirement savings protected from market fluctuation
- You value predictability and guaranteed returns over maximum growth potential
- You're looking for a conservative alternative to CDs, potentially with better rates
HOW IT WORKS
How Do Fixed Annuities Work?
You deposit a lump sum
A one-time deposit with an insurance company initiates the contract. Minimum deposit amounts vary by carrier, typically starting around $10,000
The insurer guarantees a fixed rate for the term
Commonly 3, 5, 7, or 10 years. Your rate is locked for the entire term, it doesn’t fluctuate. We compare current fixed annuity and MYGA rates from multiple carriers serving New Jersey residents, so you always see the most competitive options available.
Your money grows tax-deferred
Unlike a bank CD, you don’t pay taxes on the interest annually. You pay taxes when you withdraw, improving your effective return over the term.
At term end, you choose your next step
Withdraw the funds, renew at current rates, transfer to another annuity tax-free (1035 exchange), or convert to guaranteed lifetime income.
MULTI-YEAR GUARANTEED ANNUITY (MYGA)
The CD Alternative: Potentially Better Rates, Tax Advantages
A MYGA (Multi-Year Guaranteed Annuity) works similarly to a bank CD but is issued by an insurance company rather than a bank. Like a CD, it locks in a guaranteed rate for a set term. Unlike a CD, interest grows tax-deferred, you don’t pay taxes on the earnings annually.
We compare MYGA rates across multiple carriers to find competitive options. Rates change frequently, so we always provide current numbers during your consultation rather than publishing rates here that may be outdated.
HOW DOES A FIXED ANNUITY COMPARE?
1. Review your current plan and claims data
We look at what you’re paying, what your employees are using, and whether your current structure is working.
2. Model the self-funded alternative
We run a side-by-side comparison including stop-loss costs, TPA fees, and expected claims.
3. Give you our honest recommendation
If it makes sense, we explain how to structure it. If it doesn’t, we help you optimize what you have.
HOW YOUR MONEY IS PROTECTED
Are Fixed Annuities Safe?
Certain types of annuities often get a bad reputation, but fixed annuities are different. They are not FDIC-insured like bank products, but they are regulated by state insurance departments and backed by the financial strength of the issuing company.
Fixed annuities purchased through our agency are backed by top-rated insurance carriers and protected by the New Jersey Department of Banking and Insurance regulations, as well as the New Jersey Life and Health Insurance Guaranty Association up to statutory limits.
We work only with carriers that carry strong, independent financial ratings and explain the protection structure clearly for every contract we recommend.
HOW DOES A FIXED ANNUITY COMPARE?
Liquidity & Surrender Charges
Fixed annuities are designed for longer-term money, not emergency funds. Most contracts allow around 10% of your account value to be withdrawn each year without penalty. Withdrawals beyond that amount during the surrender period may trigger surrender charges.
We review the complete surrender schedule of every contract before you commit. No surprises.
- Penalties exist for early withdrawal of funds
- Surrender charges apply to excess withdrawls during term
- You get full access to funds after surrender period ends
TAX TREATMENT BASICS
How Fixed Annuities Are Taxed
- Interest grows tax-deferred, you don't pay taxes until you withdraw
- Withdrawals are taxed as ordinary income (not capital gains rates)
- Early withdrawals before age 59½ may trigger an IRS 10% penalty (exceptions exist)
- A 1035 exchange allows tax-free transfer from one annuity to another
COMMON QUESTIONS & ANSWERS
Frequently Asked Questions
Should I move all my retirement savings into a fixed annuity?
No. Fixed annuities are one tool within a retirement plan, not the entire plan. Most people use them for the conservative portion of their savings. We never recommend putting everything into a single product.
What happens at the end of the term?
You have four options: renew at current rates, withdraw the funds (tax implications apply), transfer to another annuity tax-free via a 1035 exchange, or convert to guaranteed lifetime income.
Can I lose money in a fixed annuity?
Your principal is protected from market losses. However, early withdrawals beyond the penalty-free amount can reduce your account value through surrender charges. We review the surrender schedule of every contract before you commit.
Are fixed annuities better than CDs?
It depends on your goals. Fixed annuities often offer better rates and tax deferral, but they have longer surrender periods and different protections than FDIC-insured bank products. The right choice depends on your timeline, tax situation, and liquidity needs.
Do You Want Predictable Growth Without Market Risk?
We are Here to help.
We find fixed annuities for you and explain where they fit, or don’t, in your retirement picture. We proudly serve all of New Jersey.
Schedule a free consultation, and let’s find the right group health plan for your team.