Fidelity Investments offers a range of different annuities and each of them has been geared to people from specific sociial and demographic groups. Fidelity has taken the time to tailor the annuities that they offer to the segments of the population who either look for information on their website visit their office or call and speak to one of Fidelity’s sales agents. The research that Fidelity has done has resulted in being able to offer annuities that will suit a wide spectrum of the investing population that is interested in annuities. The following are examples of such segments of the investment population together with their investment goals and life situations.
People have different goals and Fidelity has identified the main reasons that people want to invest in annuities. Some people are most concerned about saving for their retirement. This may be way down the road but they want to make sure that their future will be secured and want to start saving early. Others may be closer to retirement and have not previously secured any money so they are looking for immediate income to cover their immediate or impending living costs (covered by immediate annuities). There is another group that is less specific in their investment goals and they simply are interested in general savings and income. Fixed annuities are suitable for people who do not want to take any risk as they build their savings for their retirement. Fixed annuities are tax deferred. The rate of return that they offer is also generally guarateed. The principle of fixed annunities is also guaranteed as well as tax deferred growth. Lastly, they also work with Fidelity preferred providers. There is one drawback with this kind of annuity and that is that there are early surrender fees if you decide that you want to take your money out before the terms of the annuity come to maturity.
For those who want savings and income, there is the MetLife Growth and Guaranteed Income annuity that has deferred variable income and guaranteed income and growth potential compared with a pension that offers much less. It offers guaranteed lifetime income which is hard to find in other types of investments, access to your assets at all times, unlimited growth potential, and an all-in-one investment solution that is cohesive, whole, well-balanced and managed by Fidelity. The downsides to this plan are that the contract value may decrease based on market performance factors. There may be surrender charges, furthermore, if there are excess withdrawals.
The Fidelity Freedom Lifetime Income is a type of annuity that offers guaranteed lifetime income, growth potential, and low cost set-up. The downside is that the payments may fluctuate based on market performance factors.
Fixed income annuities are another type of annuity offered by this company. They offer guaranteed lifetime income, predictable income stream, and flexible payment options. The downsides are that since they are fixed payments, they may not keep pace with the level of inflation in the market economy and that could cost you money.