As a forward-thinking individual, it’s likely that you’ve already explored annuities as a viable investment option to set you up for success in re…Read More
Fixed Income Fund vs. Annuities
What Is An Annuity?
One of the questions we get all the time is, “How is your product different?”
Well, there are a few different answers to that one, but let’s start with the basics.
Annuities are investments which feature a fixed sum of money that’s paid to someone each year. They are often tied to insurance companies and can include varied sums of payment throughout the term of the investment.
So at its core, the Tactical Wealth Fixed Income Fund is an annuity.
That is, it provides our investors with stable, consistent payments every month at a fixed rate throughout the maturity of the investment.
Annuities are great for receiving steady income for either a short period of time, or for the duration of your life (up to 30 years or more).
Fixed annuities also provide for accumulation of wealth and money, asset growth, they can provide income for your family after death, and aid in long-term care benefits.
But the Fixed Income Fund offers much more than a traditional fixed annuity option.
What Is The Fixed Income Fund?
The Fixed Income Fund is your answer to stable, reliable income with diversified assets and flexible terms.
We are able to generate steady revenue for our clients by issuing or purchasing mortgage and trust deed loans in areas with historically stable valuations and advantageous foreclosure laws.
Basically, our fund allows for an investment in real estate without having to deal with the hassles of complex laws, unruly tenants, and maintenance costs.
Your return comes from the fixed interest rates paid by the mortgages we purchase, and your money gets deposited with no fees directly into the bank account of your choosing.
All of our holdings meet our stringent requirements with a maximum loan-to-value ratio of 70 percent, and our loans have tangible assets backing them for asset recovery in the event of a default including property sale, property rental, or selling of the loan.
The Fixed Income Fund vs. Annuities
While rooted in a similar type of investment, the Tactical Wealth Fixed Income fund offers several benefits not offered by fixed or indexed annuity options.
Here are just a few:
- Interest Rates: For one, the Tactical Wealth Fixed Income fund is able to offer the highest interest rates available. While other annuity options are tied to the fluctuating market interest rates, the Fixed Income Fund rates are backed by real estate and never change, even if the market does. Fixed annuities may offer a similar benefit, however their rates are often much lower as they are insurance-only products, and indexed annuities are tied to the performance of markets like the S&P 500, Dow Jones, and others.
- Easy To Understand: Something we hear a lot is that other fixed annuity options are often complex, hard to understand, and sometimes overwhelming. We’ve found that seasoned investors, clients, and even agents don’t always fully understand the complexities and risks involved with annuity contracts. Because the Fixed Income Fund is rooted in real estate, the largest and oldest asset in the world, our investment is easy to understand. If you understand mortgages and interest payments, you can understand the Fixed Income Fund.
- Senior Security: Unlike fixed and indexed annuities, the Fixed Income Fund guarantees payment first to its investors. Whereas insurance annuities are treated as equity in a particular company, our investment isn’t and therefore cannot be wiped out due to default.
- Contingency Reserve: The Fixed Income Fund has tangible assets that serve as collateral and back-up funds in the event of a non-performing or defaulting loan, while fixed and indexed annuities do not. With our fund, you will continue receiving your stable monthly payment even in the event of a foreclosure. With other options, if that particular insurance company fails or goes under, it takes your money with it.
- Fees: Annuities traditionally carry several different types of fees which can reduce your overall return, from insurance charges to administrative fees to withdrawal charges to management fees. With the Fixed Income Fund, we ensure all of our loans provide a greater return than the amount we payout to investors to ensure there are no investor fees, no transaction fees, and no management fees.
The Fixed Income Fund can be the better option to investing your money if you’re looking for a risk-averse investment with reliable monthly returns.
Contact Tactical Wealth to get started today.