What is an Index Annuity? Get The Real Facts Here

Pros and Cons of Annuities

What are the Pros and Cons of Annuities? It may send your mind into an infinite loop to imagine using money to buy money products, but that’s just how the financial world works. And Americans did just that! In just the third quarter of 2016, USA investors analyzed the pros and cons of annuities and spent $51.3 billion on them. Sound like a lot? Maybe not. Turns out that we bought $58.5 billion in annuities in the same quarter of 2015, which represents a 12.3 percent decline in one year. What’s going on here? Have the tides turned or are more investments clogging the market and our wallets? Read on for a major return on investment. Pros and Cons of Annuities 101 Mastering annuities can

Does Your State Protect Your Annuities From Creditors?

Annuities are like other financial assets. Often times, litigation efforts and creditors are able to gain access to them. As a result, the money you worked hard for is at risk. Protect Your Annuities O.J. Simpson & Florida Exemptions For Annuities Remember O.J. Simpson? I’m not talking about the notorious car chase in the Ford Explorer. According to MarketWatch, O.J made some poor financial decisions in Vegas. Consequently, those decisions led to lawsuits that ordered him to pay back creditors. O.J. put most of his money in annuities in south Florida where he lived at the time. Lucky for him, statutes in the state of Florida shielded his annuities from being touched by creditors. “If the glove don’t fit, you must acquit” may as well be,

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%

What Is A Tax Deferred Annuity?

Tax Deferred Annuities So you’ve decided to stop stuffing money under your mattress (or the bank account equivalent of putting it in a savings account with 0.000001% interest). Congratulations! Before you lose your motivation, let’s explore why a tax deferred annuity could be an ideal option for those funds. Although annuities are often associated with retirement income, you do not have to be on your way to your sunset years to purchase these products. Instead, read on to decide what’s the best investment for your needs. We promise this will make cents! Just the Tax Facts First up, you may have heard of tax-deferred annuities called by another name: “fixed tax deferred annuity.” For sake of brevity, we’re going to lop off the “fixed.” One

When is the Right Time to Get a Fixed Index Annuity?

Fixed Index Annuities (FIA) are growing in popularity. Positioned to take over all other annuity products in sales, FIA products are offering the best of both worlds for investors. Protect Principal, Spark Growth You can both protect principal and spark significant growth with an FIA product. One of the only downsides with FIA products is the incredible variety of crediting options available (how you make a return). With different formulas and competing companies offering the investment opportunity, it can be confusing to know when and where to buy. Financial advisors recommend the product for growth and protection. But financial advisors also warn to be wary of bad products with confusing returns. Plus, there are so many varieties of annuities available, it can be difficult to

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

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

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

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

What Is a Deferred Annuity?

Deferred Annuities Explained Deferred annuities mean that you are purchasing a contract and deferring income, payments or profits. Consequently, this is before you choose to do something with it. This may involve a stream of payments at a later date. Most noteworthy, most fixed and index annuities are deferred annuities. A deferred annuity is a type of annuity contract that delays payments of income, installments, or a lump sum until the investor elects to receive them and the contract is out of surrender. This type of annuity has two main phases: the savings phase also called the accumulation phase. These can include Fixed Annuities and Index Annuities. The second phase is usually the income phase, if you want this or if you have purchased a rider. Deferred