Annuity offers principle and growth protection for retirement and Guaranteed Income for Life. An annuity is a contract agreed upon between an insurance company and yourself. This contract is an
agreement to make payments at agreed intervals, usually after retirement. Taxation on these payments occurs when you begin to receive distributions or makes withdrawals. All retirement annuities are tax-deferred, which means taxation is postponed until the withdrawal period. All earnings from annuities are subject to tax penalties if they’re withdrawn before reaching the age of 59 ½.
What is the difference between fixed annuity and variable annuity?
A Fixed annuity will payout a specific interest payment and does not participate in the stock market,
mutual funds, or any other investment vehicle, which keeps your principal and accrued interest safe from any losses.
A Variable annuity is dependent on the market value of the investment and has higher fees than
most fixed annuities. Variable annuities may result in loss of principal and interest.
What happens if an annuitant dies?
If an annuity owner dies within the period of accumulation, the beneficiary will be paid the accumulated amount. This would be taxed as ordinary income and included in estate taxes.
Why should I consider an Annuity?
Annuities can help you grow and protect what you’ve saved from your 401k, mutual funds in an IRA
or any other retirement vehicles that may be exposed to market risk or poor growth potential. They
provide guaranteed income for you and your loved ones regardless of market performance or
volatility. Fixed or Index Annuities Protect your retirement savings from down markets. It can provide
predictable and guaranteed lifetime income for today or in the future. This can be a good solution if you’re concerned about outliving your liquid asset and want the security of a fixed monthly income for life or for any chosen period of time. Fixed Index Annuities are paying between 4-7% returns in 2018 with no market risk.
If you would like to request an Illustration showing Growth potential or Income options
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