Walorz Insurance

For people nearing or in retirement

Fixed and Indexed Annuities in North Carolina

Fixed and indexed annuities offer a variety of benefits, including guaranteed lifetime income options.

Request a free consultationCall 781-985-6958

Christine Walorz

Independent life insurance agent · Holly Springs, NC

  • Winner, Maggy Award (Main & Broad Magazine) 2021–2026
  • Typically replies within one business day

An annuity is a contract with an insurance company. You pay in, as a lump sum or over time. The carrier then credits interest and can pay you an income later, including an income guaranteed for the rest of your life.

I offer two kinds. A fixed annuity credits a set interest rate for a set number of years. An indexed annuity credits interest based partly on a market index, such as the S&P 500. It has a floor, so you aren't credited a loss when the index falls.

Because I'm independent, I compare contracts from several carriers. Rates, surrender periods and income options vary a lot between them. The right one depends on when you'll need the money and how you want to use it.

Important to know about fixed and indexed annuities

  • Fixed and indexed annuities are insurance contracts. They are not securities or bank deposits, and they are not FDIC insured.
  • An indexed annuity is not invested in the stock market or in any index.
  • Interest credited to an indexed annuity is based on an index formula. Caps, participation rates and spreads are set by the carrier and may change.
  • Withdrawals above the free-withdrawal amount during the surrender period may incur surrender charges and a market value adjustment.
  • Withdrawals are taxed as ordinary income and, before age 59½, may be subject to a 10% federal tax penalty.
  • Optional riders, including income riders, may carry an additional annual fee.
  • Guarantees are backed by the financial strength and claims-paying ability of the issuing insurer.
  • This is a general description; the contract controls. Consult a tax professional about your situation.

The details

How fixed and indexed annuities work

  1. 01

    Guaranteed lifetime income options

    Many annuities can pay you an income for life. You can annuitize the contract, which turns it into a stream of payments, or add an optional income rider. Keep in mind: income riders usually carry an annual fee. Guarantees are backed by the claims-paying ability of the issuing insurer.

  2. 02

    Protection from market losses

    A fixed annuity credits a declared rate. An indexed annuity credits interest using an index formula, with a floor, often 0%, in years the index falls. Keep in mind: an indexed annuity's interest is limited by caps, participation rates or spreads. The carrier sets these and can change them.

  3. 03

    Tax-deferred growth

    You generally don't pay income tax on credited interest until you withdraw it. Keep in mind: withdrawals are taxed as ordinary income. Taking money out before age 59½ may add a 10% federal tax penalty. Consult a tax professional.

  4. 04

    A death benefit for the people you name

    If you die before receiving all your money, the remaining contract value generally goes to your beneficiaries. It usually passes to them directly, without going through probate.

What shapes your options

What goes into the right annuity

Every carrier's contracts work a little differently, which is exactly why comparing more than one matters.

  • Your age and when you'll want income to start
  • How much you're putting in, and whether it's a lump sum or paid over time
  • How long you can leave the money untouched (the surrender period)
  • Whether you want an income rider, and what it costs each year
  • Current interest rates, caps and participation rates, which change over time

Working with Christine

Three steps, no pressure

  1. 01

    A short conversation

    We talk about when you'll want income, where your money is now, and how much you'd like to keep easy to reach. No forms to fill out first.

  2. 02

    I compare the carriers

    I compare fixed and indexed annuities from the carriers I work with and bring back a short list in writing. I explain the rates, surrender periods, fees and income options in plain English.

  3. 03

    You choose, I handle the rest

    Once you pick, I handle the application and any transfer or rollover paperwork with your current institution. I stay your point of contact for the life of the contract.

Request a free consultationCall 781-985-6958

Questions

Annuity questions, answered

What's the difference between a fixed and an indexed annuity?

A fixed annuity credits a set rate for a set period, so you know exactly what you'll earn. An indexed annuity credits interest based on a market index, with a floor in down years and a cap or participation rate in up years. Fixed is simpler and more predictable. Indexed offers the potential for more interest, with more moving parts.

Is an annuity an investment?

No. Fixed and indexed annuities are insurance contracts, not securities. Your money is not invested in the stock market. An indexed annuity only uses an index to calculate the interest it credits.

Can I get my money out of an annuity?

Yes, within limits. Many contracts let you withdraw up to about 10% a year without a surrender charge. Taking out more during the surrender period, often 5 to 10 years, usually means a charge. Keep in mind: withdrawals are taxed as ordinary income and may carry a 10% federal tax penalty before age 59½.

How does guaranteed lifetime income work?

There are two common ways. You can annuitize, which turns your contract into payments for life. Or you can add an income rider, which pays a set income for life while you keep access to your account value. Keep in mind: riders usually cost an annual fee. Guarantees are backed by the claims-paying ability of the issuing insurer.

Should I move my 401(k) or IRA into an annuity?

Sometimes it makes sense, and sometimes it doesn't. It depends on your age, your other income, the fees you pay now and how soon you'll need the money. I'll explain the trade-offs, including surrender charges, before you decide. If an annuity isn't the right fit, I'll tell you plainly.

Keep exploring

Related coverage

All services

  • Whole Life Insurance

    Lifelong needs, fixed premiums

    Permanent coverage with level premiums that lasts your whole life and builds cash value along the way.

  • Indexed Universal Life (IUL) Insurance

    Lifelong needs, flexible premiums

    Permanent coverage with flexible premiums. Interest is credited to its cash value based on a market index, with a floor and a cap.

  • Final Expense Insurance

    Seniors, funeral costs

    A smaller permanent policy that covers funeral and end-of-life costs so your family isn't handed the bill.

Let's talk

Wondering whether an annuity fits your retirement plans?

A fifteen-minute conversation is all I need to start comparing quotes across the carriers I work with. No pressure, no obligation, and I'll tell you if what you already have is the better fit.

Request a free consultation

Christine's direct line

781-985-6958