Annuity Facts

Fixed Index Annuities can give you locked in profits with the potential of double digit returns without market downside risk.

Annuities, sold by insurance companies, can help you save more money toward retirement.  They have 2 big advantages: (1) unlike 401K’s and IRA’s, there is no limit to contributions made to an annuity and (2) money is saved while taxes are deferred.  

All the money that is put into an annuity compounds year after year without a tax bill.   This ability to keep every dollar invested can be a big advantage over taxable investments.  When the money is needed for retirement, you can elect an income stream for life or a lump sum pay out.  As with any retirement account, taxes on gains will be due either on the lump sum pay out or on the income stream.

  • Your map to financial success!

  • There are several programs available, each unique, designed to meet different retirement situations.  Therefore, it is necessary to have an annuity consultation with someone who is well versed in all the programs.Call to set an appointment to see actual annuity income illustrations designed for your personal situation.

A Few MORE Words About Annuities

Choosing annuities as retirement vehicles:

As with traditional IRAs or 401Ks, the goal of an Annuity is to accumulate as much money as possible for retirement which means leaving the money in place to grow, tax-deferred. Therefore, looking at an annuity as a retirement vehicle, you must give it a chance to grow tax-deferred as most retirement vehicles are designed to do.  Actually, annuities have a shorter lifespan than an IRA in that they usually mature every 5 to 10 years, at which time they can be rolled again into a new product, left alone to continue to grow, or taken out for retirement.  

Regardless of whether the annuity has matured, at 59 ½ years of age or older you can take out 10% of your annuity value every year penalty free which gives you access to a portion of your money while it continues to grow tax-deferred.  

Annuities vs. Inflation

While there are several types of annuities available, I will focus on one:  The fixed index annuity has become the number one choice for retirement planning using annuities. Fixed Index annuities tie to a stock market index of your choice so as the index goes up the yields go up. However, if the market index declines the annuity value does not decline.  Moreover, gains lock in yearly. Some fixed index annuity programs offer up-front bonuses ranging from 5% to 20% depending on the annuity contract that best fits your needs and goals. The bonuses can help to jump start retirement programs.

Recognizing the Income Need

Most of our lives, we budget our expenses according to an income stream that we receive. Assuming that a person has a retirement nest egg, it is usually invested in some vehicle.  When the time comes, how does one turn this money into an income stream that can adjust to needed living standards and last for a lifetime?   

When one looks at the options available for turning a lump sum of money into a dependable income stream that will last for a lifetime and keep up with inflation, then one has to seriously consider the benefits of the available fixed index annuity programs.   The fixed index annuity programs offer guaranteed income streams that last for a lifetime while still giving you the option, to walk away with the lump sum cash accumulation value. 

If your income need is immediate, we also have immediate annuities which are fixed annuities that begin an immediate monthly pay out. Depending on your situation, annuity programs can be designed for immediate and long term desires.