ANNUITIES

Annuities are insurance contracts that make regular payments to you either immediately or at some point in the future. It is designed to help protect you from the risk of outliving your income. You can purchase an annuity to help grow or protect your retirement savings or to provide you with guaranteed income. Annuities do have limitations. If early withdrawals occur penalties may apply and earnings are taxable as ordinary income and may be subject to a 10% federal tax penalty if withdrawn prior to age 59½.

Annuities are flexible so you can choose one to:

• Invest a lump sum or invest over a period of time 
• Start receiving payments immediately or at some later date
• Select a fixed, variable or indexed rate of return

Fixed annuities don’t involves risk and don’t lose value. All guarantees and protections are subject to the cl

There are three basic types of annuities.

• Fixed annuities guarantee that you’ll earn a certain amount of interest (usually less than you could earn in the stock market or with mutual funds), but also offer a guaranteed payout.
• Variable annuities allow you to choose your risk level with different investment options. Choose wisely, because you could receive a substantial payout — or lose the money entirely — depending on the investment option you select.
• Indexed annuities earn a return pegged to a market index (commonly the S&P 500) so that if your annuity performs well, your monthly payout in retirement could be higher.

Annuities start paying out at different times.

• Immediate annuities start paying you back within a year after purchase, so they can be a good option to buy during retirement.
• Deferred annuities start paying you back at a later point specified in your contract —with deferred annuities your money can grow tax-deferred for longer because you won’t pay the IRS until you receive the money as income down the road.

Annuities are used to supplement other investments like a 401k or a Pension.  Other investing vehicles that becoming very popular are the Index Universal Life Insurance (IUL).  Before deciding on an annuity, you should consider your income needs, risk tolerance and investment objectives.

We can answer your questions, help you compare investment options, and give you information about how to enroll in a Annuity. Call us or fill out the request form.