What is an Annuity? 
    
An annuity is a contract whereby a premium is paid by one party (you), and the other party (the insurance company) agrees to pay a stipulated amount (the deposit plus interest) periodically throughout life.

  • Annuities date back to the Roman Empire.
  • Schools, hospitals and churches don't have Social Security -they use annuities to fund retirement.
  • Most annuity companies invest their money in U.S. Government Securities and highly rated Corporate Bonds.
  • State Lotto Funds and high-salaried athletes use annuities to fund their payouts.

 

Tax-Deferred Acccount Status:  No taxes are due on an annuity's earnings until withdrawn, while interest on a CD is taxed each and every year whether you touch it or not. Some people have to make quarterly estimated tax payments because of interest they earn on CD's.

Liquidity:  Annuity accounts are liquid when compared to bank CD's

  • Some annuities allow interest withdrawals after 30 days.
  • Most annuities allow withdrawals including interest of 10% per year of the accumulated value.
  • All annuities can be converted to an income stream you can never outlive.
  • Most annuities will allow full access to your money in the event you become terminally ill or confined to a nursing home.
  • All required minimum distributions from IRA accounts are made free of any charges.

Triple Compounding:  A bank CD only pays interest on your principal and interest on the interest you earned last year, with the last part going towards taxes. An annuity pays interest on your principal, PLUS interest on the interest you earned last year, PLUS interest on the taxes you would have paid.

No Probate:  This is a very important concern for retirees. The fact that upon death your funds pass directly to your named beneficiary without the DELAYS, PUBLICITY and COST you might experience if your assets are not in a trust.

Creditor Protection:  With an annuity account, many state statues (Florida being one of them) say "No one can garnish, levy or attach your funds while in an annuity, nor through judicial processes."

Incontestability:  Since proceeds from an annuity pass directly to a named beneficiary, there is no possibility that your wishes can be contested.

Annuity accounts clearly give you choices. They represent the cornerstone of any thoughtful savings plan.

Annuity accounts offer:

  • Safety
  • Liquidity
  • High yields without risk
  • Tax advantages
  • Flexibility
  • Incontestability
  • Creditor protection
  • Privacy protection
  • Long term care and terminal illness protection

 

What's right for you? 

There are a few different types of annuities; immediate annuities, fixed annuities, and fixed index annuities. For each type we will offer different options, so you can get exactly what you need. You can begin the process of finding out what's right for you by calling us today. It's all based on your life and your priorities.

 

Disclosure:

*A variable annuity is a long-term financial vehicle designed for retirement purposes. In essence, a variable annuity is a contractual agreement in which payment(s) is/are made to an insurance company, which agrees to pay out an income or a lump sum amount at a later date. There are contract limitations, fees and charges associated with variable annuities which include, but are not limited to, mortality and expense risk charges, sales and surrender charges, administrative fees and charges for optional benefits. Early withdrawals may be subject to surrender charges, taxed as ordinary income and, in addition, if taken prior to age 59 ½, an additional 10% federal income tax penalty may apply. Withdrawals reduce annuity contract benefits and values. Investments in variable annuities will fluctuate and values upon redemption may be less than the original amount invested. Variable annuities are not guaranteed by FDIC or any other government agency and are not deposits or other obligations of, or guaranteed or endorsed by, any bank or savings association. Any guarantees are based upon the financial strength and claims-paying ability of the insurance company issuing the annuity contract.

*All investing comes with the risk of losing money.