A little about Annuities....
Safeguard your retirement money with no downside market risk, locked in profits, and with the potential of double digit returns. With our program you can have guaranteed income payments for as long as you live.
Contact me for a complimentary review of your retirement needs. I will furnish you with a written proposal and recommendation that will provide you with the current performance of our products and how it would benefit you.
Don’t let another day pass where your money is at risk or earning minimal returns.
Annuity Facts
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.
Solid reasons that negate objections for choosing annuities as retirement vehicles:
Addressing the objection that your money is tied up:
Most annuities have declining penalties for early withdrawal because they are designed to accumulate “wealth” for a certain time period. As with traditional IRAs or 401Ks, the goal is to accumulate as much money as possible for retirement which means leaving the money in place to grow, tax-deferred. Therefore, if you look at an annuity as a retirement vehicle, giving it a chance to grow tax- deferred shouldn’t be a concern as that is exactly what 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.
Addressing the objection that annuities won’t keep up with inflation:
Traditionally 2 types of annuities exist: fixed and variable annuities. Variable annuities are similar to money in a mutual fund wrapped in an annuity package. However, while these annuities can keep up with inflation when the stock market is doing well, they are also prone to lose value if the stock market declines. To avoid market risk, one can chose fixed annuities. However, fixed annuities usually come with a set interest rate and a minimum interest rate which can be very low and may not keep up with inflation. Because of these two scenarios, in which one does not eliminate market risk and the other may not keep up with inflation, some of the larger and well-established annuity companies offer another type of fixed annuity which still eliminates market risk but also has the ability to keep up with inflation when the market does well. It is called a Fixed Index Annuity. Fixed Index Annuities have 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? One scenario could be to withdraw a portion of that money every month or year and hope that it doesn’t run out too soon. Another scenario might be to put the money in an interest bearing account and hope that interest rates stay high enough to keep up with inflation. 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, at any time, 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 with immediate and long term annuity programs.
Call to set an appointment to see actual annuity income illustrations designed for your personal situation.
