Annuities Can Be Life Changing!

Annuities Can Be Life Changing!

Are you concerned about running OUT of money before you die?  What if you’re blessed to live to a ripe old age?  Wouldn’t it be great if you could receive a retirement check EVERY month for the rest of your life?

You CAN live your life with financial independence even if you aren’t independently wealthy.  Annuities can help provide TAX-DEFERRED Interest accumulation while you protect your money when the market drops.

What is an Annuity?

An Annuity is a contract between a life insurance company and a client for the purpose of providing a reliable income stream in exchange for your investment.  This can be set up for a fixed period of time, starting now (Immediate) or later (Deferred), or it can continue through the remainder of your lifetime.  The client deposits a given amount of funds (accumulation period) and the financial institution grows the funds until the client begins withdrawals (distribution period).Annuities

By definition, it is a sum of money guaranteed payable at yearly intervals, lasting for life or a specific period.  Quite simply, annuity refers to income. The purpose of an annuity is to protect against living beyond one’s income.

When to use an Annuity?

  • When you are looking for an income stream besides social security that you can’t outlive.
  • When you need protection against losses.
  • When you are looking for a growth (indexing).
  • When needing to transfer money from risk.

Fixed annuities offer: 

Retirement

  • Interest is tax deferred helping build your retirement savings income faster.
  • Can be used for both qualified and non-qualified funds.
  • Downside protection during a struggling economy.
  • Access to some of your annuities value if the need arises.
  • Guaranteed income that can last as long as you live (starting at 59½ or older).
  • A death benefit for your loved ones.

Fixed annuities are designed to meet long-term needs for retirement income.

Guarantees are backed by financial strength and claims-paying ability of the issuing company.

Early withdrawals may result in loss of principal and credited interest due to surrender charges.

Main Types of Annuities:

  • Single Premium Income Annuity (SPIA)Lump sum funds that you want to invest to turn into an income stream.  It can be set up by an immediate premium and scheduled to begin payments within 13 months or deferred which provides for interest accumulation and growth on a tax deferred basis.
  • Couple In A SwingFixed Annuity (FA)The interest rate credited to the account is a fixed percentage and has a fixed rate of return for the life of the annuity.  This interest rate is guaranteed to remain fixed.  It offers safety advantages but may not compete with inflation.
  • Fixed Index Annuity (FIA)Used when you want to participate in stock market gains (Indexing) but not the losses.  They offer crediting interest to the general account by linking performance to an index such as Standard and Poor’s 500 or the Dow Jones Industrials, with potential for higher gains than the usual fixed accounts.
  • Variable Annuity (VA)Participating in the stock market (usually through mutual funds) and unlike fixed annuities, variable annuities do not guarantee the interest rate and income payment amount.  They have a separate account which is not part of the insurance company’s portfolio.  They may range from short-term high yield, riskier investments which are designed to provide a hedge against inflation.  Sold only by licensed security agents.

Annuities have different payout options:

  • Life Income
  • Life Income with Refund
  • Life income with Period Certain
  • Joint Life Options

If you are interested in or would like more information about any of these products, please enter your information or contact us at (303) 887-4231 and we will be happy to assist you.