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  Life  *  Annuities  *  Mortgage Protection  *  Medicare Plans

Annuities

Welcome to the world of annuities.  A safe way to earn returns.

Regardless of whether you are young or are about to retire, these outstanding financial products are an excellent way to plan for your long term savings.

  If you are in a saving-money stage of life, annuities can help you:

• Meet your retirement income goals.
• Manage and diversify your investment portfolio.
• Have different options.
• Benefit your heirs.
• Plan your estate.

• If you are in a need-income stage of life, annuities can help you:

• Have a lifetime income.
• Protect against outliving your assets.
• Protect your assets from creditors.
• Diversify investment risk.
• Tax deferral on investment earnings.

  Annuities Vs. CDs

Annuities and CDs (bank certificates of deposit) are similar in that they are safe, secure investments with guaranteed rate of returns based on interest rates, both issued by large financial institutions, CDs issued by banks, Annuities offered by insurance companies, but they both possess inherent differences as well.

The big differences are that while Annuities offer everything CDs offer, they carry several advantages.

• Generally Higher returns
• Tax-Deferral
• Liquidity

• CDs have FDIC protection to guard against Bank or banking industry failure, but Annuities also have safety measures put in place by the state to ensure Insurance companies have reserve pools in place. 
  
  Higher Returns:
  Annuities, like CDs, are hinged to interest rates. But when rates are low so are CD returns whereas annuities have a minimum guarantee in place, usually 5 - 7 percent. Your investment will never dip below the guaranteed minimum interest rate during times of falling or low interest rates. A type of fixed annuity, called an indexed annuity, offers the safe guaranteed minimum but also has the potential for much higher growth following an interest rate determined by a formula based on the rise or fall of a market index, such as the S & P 500. 
  
  Again, low interest rates mean CD returns will be low as well. To offset the problem of low or falling interest rates, insurance companies equip annuities with guaranteed minimums. This is an agreed minimum rate of interest so that your investment is assured not to fall below the minimum performance even if CD rates do.
  
  Tax-Deferral:
  You pay annual taxes on CD interest earned without being able to withdraw funds until your investment term is over. With annuities, there is also a set term, but the earnings are tax-deferred. You only pay taxes on interest earned when money is withdrawn. So with annuities the deferred tax on your interest remains in the investment earning you more and more money, instead of being paid out to state and federal tax agencies on a yearly basis.
  
  Liquidity:
  CDs do not allow you to withdraw any money during the term period. Annuities have provisions that allow you to withdraw money, generally 10% of your account value annually plus many contracts allow you to remove the earned interest on a monthly basis. Several other contract provisions allow you access to all of your funds such as in the event you are hospitalized, undergoing a life-threatening illness, subjected to a permanent or extended stay in a nursing home, or other major calamities that affect you economically. In addition, annuities can be structured to pay-out for the life of the owner or over a fixed term such as five or ten years, thereby spreading out your tax-burden and providing enhanced income security. In short, Annuities offer enhanced flexibility.
   

For a Free no obligation Consultation, Call 473 - 1952