Annuities

Fixed Annuities

  • Tax-Deferred annuities have been a popular savings vehicle for many years.  Even banks have embraced this investment alternative, becoming America's top sellers or this tax-favored product.  Still, many of its benefits go unnoticed or overlooked. 
  • Who buys fixed annuities?
    • The answer is simple: Americans who want to build a guaranteed nest egg using a competitive interest rate and tax-deferred interest would benefit from fixed annuities.
  • What do you mean by "tax deferral?"
    •  It means you can postpone taxes of interest earned until you make a withdrawal.  Since you control when you pay taxes, we prefer the term "tax-controlled" annuities!
  • Why are fixed annuities considered insurance products?
    • They are considered insurance products because the financial institution backing the annuity must be willing to guarantee a minimum interest rate and guarantee a minimum income payout. The company promises are explained in each annuity policy.

Can you explain the term "guaranteed-income payout?"

  • This is a fixed annuity's most overlooked benefit.  Based on your age and contract value, the company guarantees to pay you an income stream for a certain period or the rest of your life.  A Wall Street study on asset allocations Risk concluded stable income is the foundation of every investment portfolio.

What are other benefits to owning an annuity?

  • The IRS has no maximum deposit limits, and distributions are not required.  Both apply to other tax-favored vehicles such as IRAs and pension plans.

Can fixed annuities help in estate planning?

  • Yes, annuities can help you avoid the delay and expense of probate. You could lose 5% to10% of your estate to probate and attorneys fees!  Most annuities waive contract charges at death, and the contract value is paid quickly to the beneficiary. The surviving spouse may have the option to continue the existing policy.

Do I have access to my funds?

  • Most annuities allow penalty-free annual withdrawals of either 10% of the contract value or the annual interest.  A warning: partial withdrawals are taxable, which may weaken an annuity's tax-deferring power.

What is the best reason to purchase a fixed annuity?

  • We believe Americans are aggravated with mutual funds and the stock market  The average American's worries about the stock market continue to grow, unlike his or her portfolio!  Fixed annuities allow you to put your retirement on automatic pilot. Stop worrying and start living! Let a slow and steady plan help you achieve financial freedom.
  • Build a safer nest egg with a fixed annuity
  • The perfect nest egg rests upon a guaranteed foundation

Services