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What To Watch Out For

Annuities For Growth, Fixed Annuity, Income Annuities, Index Annuity, What To Watch Out For,

Credit Rating Agencies: Which One Should I Trust?

    When you’re looking through different annuity selections with your financial advisor or consultant, knowing which insurance offer to trust makes a big difference. Credit rating agencies rate insurance companies with a grade or percentage. This score assigned to each independent insurance agency indicates that company’s ability to pay policyholders’ claims.   The Big Four: A.M. Best, Comdex, Moody’s, and Standard & Poor’s   Financial rating services such as A.M. Best, Comdex, Moody’s, and Standard & Poor’s rank insurance companies based on their financial strength and stability. Before you invest in an annuity, check that annuity’s insurance provider’s ranking. These financial rating agencies are independent and they all have their own rating scale based on their own standards. Which rating service should you use?

Annuities For Growth, Fixed Annuity, Income Annuities, Index Annuity, What To Watch Out For,

Who Can You Trust With Your Money: FDIC Insured Banks Vs. Annuities

  FDIC Vs. Insurance Providers: Are You Protected? The federal government requires banks to keep 10% of your CD in reserves. 10 cents of every dollar you’ve deposited is in your banks reserves. This goes for money market accounts as well as any money that you put in your bank account. On the other hand, state insurance commissioners regulate annuities. This creates a major difference because insurance companies have to keep 100% of your annuity. That means 1 dollar for every dollar of your investment. According to Forbes, if you wanted to take your annuity out of the insurance company and liquidate that asset, you would walk away with the current value of the annuity plus the current value of future obligations on those contracts. Breaking It

buying an annuity
Annuities For Growth, Annuity Riders, Income Annuities, Index Annuity, What To Watch Out For,

7 Questions to Ask Before Buying an Annuity

What to Ask Before You Buy an Annuity Many people reaching retirement are looking for ways to improve their financial security. It is unsurprising that many people are considering buying an annuity. If chosen well, an annuity can prevent a person from outliving their finances. What’s more, it can provide increased protection against a volatile stock market. As annuity will convert current wealth into a steady income, it is vital to make an informed decision. Also, as life insurance and annuity scams are on the rise, an investor should not rush into a plan. So, it is important to ask yourself the following seven questions when buying an annuity. 1. What is the Annuity Process? An annuity is a big financial commitment, so you must have

types of annuity
Annuities For Growth, Fixed Annuity, Income Annuities, Index Annuity, What To Watch Out For,

The Importance of Understanding The Different Types of Annuity

Understanding Different Annuities Receiving A Paycheck For The Rest Of Your Life Sounds Great, Right? This isn’t a dream. It’s actually possible thanks to annuities. Annuities are a form of life insurance. You pay a sum of money (called a single premium annuity, not to be confused with a SPIA). This can be either all at once or over a period of time (flexible premium annuity). In return, your money does not go down (only if you buy from one of our advisors), it only goes up (depending on the crediting option you choose).  Also if you buy an income rider (you will pay a fee, should only be about 1%) you receive regular disbursements of that money until you’re no longer living. A staggering 84%

Annuity Riders, Income Annuities, What To Watch Out For,

What Happens If I Die Before I Begin To Receive Payments From My Annuity?

What Happens If I Die Before I Begin To Receive Payments From My Annuity? In the unfortunate event of the contract owner’s death before income payments begin, the beneficiary may receive a death benefit from the annuity. In some contracts, the death benefit will be based on the account value. Other contracts use the surrender value or other applicable contract value to calculate the death benefit. What if you have a spouse? Does he or she have inherent rights?  If your spouse is the surviving joint owner or sole beneficiary, then he/she may have the ownership rights with all rights and privileges of the original owner, as allowed by IRS regulations.

Annuities For Growth, Income Annuities, Index Annuity, What To Watch Out For,

Two Distinct Phases of an Annuity

What Are the Two Phases of an Annuity? The Accumulation (or Investment) Phase: This is the phase in which you add money to the annuity and collect interest in some form. A purchased deferred annuity is necessary when this option is utilized. You can purchase one in one lump sum. You can make investments periodically over time. The Distribution Phase: This occurs when you begin distributions from the annuity. Two general options for receiving distributions are available. The first option allows some or all of the money in the annuity to be withdrawn in a lump sum. The full contract value can be “rolled” into another agreement without paying taxes. This is called a 1035 exchange. The second option while using an income rider is to turn on the income

Fixed Annuity, Index Annuity, What To Watch Out For,

What Is A Surrender Charge?

What is a Surrender Charge? Annuities: Withdrawals At no Charge A deferred annuity may be surrendered to receive a lump-sum payment of the account’s value. Most annuities have a surrender period that allows withdrawal at no charge. Withdrawals during the surrender period (meaning during the contract term, remember only allow this to be a MAX of 10 YEARS!) are usually subject to charges based on several factors including the account value and the number of years remaining. DO NOT accept any surrender charges over 10%. If you have any questions please contact us. Some products will have 14% or 20% surrender changes. Insurance companies should not sell these! Surrender-Charge Free Withdrawal Options Annuities are long-term instruments designed to accumulate money for retirement. Consequently, they provide the best

Annuities For Growth, Index Annuity, What To Watch Out For,

Are There Any Fees For My Fixed Annuity?

What Are The Charges For A Fixed Annuity? Most annuities do not charge up-front sales charges, rather they have charges for withdrawals before the end of a stated period. A fixed and fixed-indexed annuity do not have administrative fees, although interest crediting rates take into account expenses related to the product.  Variable Annuities Variable annuities may involve ongoing maintenance and administrative fees to provide guaranteed death benefits and cover expenses related to the product. When purchasing a variable annuity, information regarding contract charges in the contract’s prospectus is available. All this means is that with an index or fixed annuity there are no fees. Therefore, if you buy from the right insurance carriers, you’ll have little if any fees. Say you invested $100,000 into a fixed or index

Annuities For Growth, Fixed Annuity, Index Annuity, What To Watch Out For,

Access to Funds: What if I need to access my money during the accumulation phase?

Access to Your Money What if I need to access my money during the accumulation phase? Annuities are designed to accumulate money for retirement. Hence, they provide their best possible benefit if left intact. This is without taking out any withdrawals. Some of our products offer withdrawal options in your annuity that include 10% penalty-free withdrawals. and first-year credited interest withdrawals. Be careful here, some annuities only allow 5% or interest only so please make sure you understand what options you have before you purchase an index or fixed annuity.  Withdrawals may be subject to early withdrawal charges and taxes. Meaning, if you take over the allowed amount of (5-10%) you will have to pay surrender charges and you will always have to pay taxes on any profits you

Fixed Annuity, Index Annuity, What To Watch Out For,

How Do I Know If An Insurance Company Is Creditable?

What To Look For In A Fixed Annuity When It Comes To Ratings How do I know the insurance company is creditable? There are about 50 insurance carriers, but ONLY 12 investable. If an AM Best Rating is below an A-, it would be advisable to disregard any investment or long term relationship with them.  Here are two rating companies to research when you are trying to find the best annuities to purchase. A.M. Best Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the insurance industry.  Contract owners refer to Best’s ratings and analysis as a means of assessing the financial strength and creditworthiness of risk-bearing entities and investment vehicles.  ONLY WORK WITH CARRIERS THAT ARE A- or