Fixed & indexed annuities (FIA)
Income that doesn't run out whether the market rises or falls
An annuity is a contract with an insurance company that turns part of your savings into steady payments, even for life. At Latin Prime Financial Group we explain your options in plain words, with no pressure and no fine print, so you decide with confidence.
4
types we handle with a life license: FIA, MYGA, SPIA and DIA
Lifetime
income option that may not run out while you live
$0
cost of your first consultation to review your situation
What is an annuity, in simple words?
An annuity is an agreement with an insurance company. You contribute money (all at once or over time) and, in return, the insurer commits to paying it back to you as income: now, in a few years, or for life. It's a tool built for retirement, when your goal is no longer to take risks but to have income that arrives reliably.
There are several types, and they don't all do the same thing. We work with the ones that fall under a life insurance license: FIA (Fixed Indexed Annuity), MYGA (Multi-Year Guaranteed Annuity), SPIA (Single Premium Immediate Annuity) and DIA (Deferred Income Annuity). Each has its moment and its ideal client.
RILA (Registered Index-Linked Annuity) and variable annuities are tied to market investments and require a separate securities license. If your case points that way, we'll tell you honestly and connect you with an authorized professional; we won't sell you something that isn't the right fit.
MYGA vs. FIA: the two most often confused
Both protect your principal from market drops. The difference is how your money grows.
Educational example to illustrate the general difference. Rates, minimums and caps are set by each insurer and change over time.
How we begin, step by step
No rush, no obligation. You decide at the end.
1. We talk about your situation
We review your retirement goals, your savings, when you want income and how much liquidity you need on hand.
2. We check whether an annuity fits
If it isn't best for you, we'll say so. If it fits, we choose together the type (FIA, MYGA, SPIA or DIA) that applies.
3. We compare insurers
We review options from financially strong companies and show you clear terms: the term length, charges and guarantees.
4. Rollover or contribution, done right
If it comes from a 401(k) or IRA, we coordinate a direct transfer so you don't pay penalties from a poorly handled move.
5. Review over time
Your life changes. We follow up so your plan keeps making sense as the years go by.
Why a family considers an annuity
- Steady, predictable income that complements Social Security and helps cover your fixed monthly expenses.
- A lifetime payment option: you can choose income that lasts as long as you live, real relief from the fear of outliving your money.
- Principal protection: with fixed and indexed annuities, a market drop does not reduce your guaranteed value (per the contract terms).
- Tax-deferred growth: while the money stays in the annuity, you don't pay taxes on the gains until you start withdrawing.
- You can move money from a 401(k) or IRA into an annuity through a rollover, without taking it out of your pocket first and with no penalty when done correctly.
- Peace of mind for your family: many annuities let you leave a benefit to your beneficiaries if you pass away before receiving it all.
Before you decide, keep this in mind
- Surrender period: for certain years, withdrawing too much can trigger a charge. Plan your liquidity separately.
- Guarantees depend on the financial strength of the insurance company that issues the contract, not on the government.
- Lifetime income and riders (added benefits) usually carry a cost; it's worth understanding before signing.
- Every application is subject to the terms, approval and underwriting of each company.
Myths worth clearing up
Let's talk straight about what's said about annuities.
"If I die, the insurer keeps my money"
It depends on the contract. Many annuities include a death benefit for your beneficiaries. It can be chosen.
"All annuities are the same"
No. A MYGA, an FIA, a SPIA and a DIA work differently. Choosing the wrong one is the most common mistake.
"I lose all access to my money"
Most allow you to withdraw a percentage each year without charge. What you must respect is the surrender period.
"They're an investment that will make me rich"
They are not an investment or a promise of wealth. They're a tool to bring stability and income to retirement.
Common mistakes when buying an annuity
- Signing without understanding the surrender period and the charges for withdrawing early.
- Not being clear on when and how the income will begin.
- Putting all your savings into the annuity and leaving no liquidity for emergencies.
- Assuming every company offers the same rates and guarantees.
- Relying only on whoever is selling, without an honest review of whether the product fits your life.
Is an annuity right for you?
It's worth considering if...
- You're near retirement or already retired and want income that doesn't depend on the market.
- You worry your savings could run out before you do.
- You have a 401(k) or IRA and want to turn part of it into guaranteed income.
- You want to protect part of your principal from market downturns.
- You prefer certainty and stability over chasing the highest possible return.
It may not be the time if...
- You might need all that money in the short term (annuities have a surrender period with charges).
- You're seeking aggressive growth and are willing to take on market risk.
- You don't yet have a separate, liquid emergency fund.
- Your case points to a variable annuity or RILA: that requires a securities-licensed professional, and we'll refer you.
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Frequently asked questions
Is my money safe in an annuity?
Safety depends on the type of annuity and, above all, on the financial strength of the insurer that issues it. Fixed and indexed annuities protect your principal from market drops per their terms.
Can I lose money?
With a MYGA or an FIA you don't lose principal from a market drop. You can receive less than you contributed if you withdraw during the surrender period, due to the charges that apply.
Can I use my 401(k) or IRA?
Yes. You can roll over a 401(k) or IRA into an annuity through a direct transfer, without taking the money out of pocket and with no penalty when done correctly.
At what age does it make sense?
There's no single age. It's often considered as you near retirement, but there are also deferred products for those planning years ahead. We define it based on your case.
What about variable annuities or RILA?
Those are tied to market investments and require a securities license (Series 6/7). We don't sell them: we identify them and connect you with an authorized professional.
How much does it cost to talk to you?
Your first consultation is free. We review your situation honestly, and if an annuity isn't best for you, we'll tell you clearly.
Educational content, not individual financial, tax or legal advice. Annuities are insurance contracts; their guarantees depend on the financial strength of the issuing insurer. Every application is subject to each company's terms, underwriting and approval. Surrender periods and charges apply. Latin Prime Financial Group is an independent, life-licensed insurance agency; variable and RILA annuities require a securities license and are referred to an authorized professional. Consult your tax advisor before a rollover.
Let's talk about your retirement, no obligation
We explain your options in plain words, in Spanish or English, and you decide calmly. If it's not right for you, we'll say so.