Annuities

There are three main types of annuities, Fixed and Index which have a minimum interest rate guarantee and variable annuities which do not have any guarantees at all.


Annuities have been in existence for well over two hundred years. The very first mention of Annuities in the United States was the use of these products by the Presbyterian Church in 1740 to provide security for the clergy and widows. Annuities allow you to accumulate tax-deferred funds for retirement and then, you may with drawl all of the proceeds out after the penalty period phase which varies depending on the company and the type of policy it are. Or if you desire, receive a guaranteed income (this process is called Annuitization) payable for life or for a specified period of time: generally a term of five or ten years.
Annuities are offered by Insurance companies and sold through licensed agents.

The insurance company must be evaluated and licensed in your state as does the agent. State insurance commissions scrutinize Insurance companies to ensure they have reserve funds, commonly referred to as State Legal Reserve Pools, in place to protect investors before granting insurance companies licenses. If an insurance company goes out of business other insurance companies licensed in state must assume bankrupt insurers obligations and liabilities. Note that this protection protects fixed-rate annuity holders only, with no protection afforded to variable annuity owners.
Annuities are very similar to CDs offered by banks. Just like banks insurance companies offer different rates and returns on annuity investments.

Advantages of Annuities:
All annuities have three primary advantages:
Tax Deferral, Avoidance of Probate, and a Guaranteed Income (optional) for a fixed period of time, or income for life.

More specific reasons to invest in fixed, index and immediate annuities:
You need to safely create wealth for your heirs
You need tax-deferred growth
You need your principal and interest guaranteed
You need your heirs to avoid probate upon your death
You need an increased death benefit
You need stock-market linked gains without the downside risk
You have money that is designated for inheritance
You do not need more than 10% liquidity annually
You can use a Medicaid friendly annuity to help you qualify for Medicaid or Medical
Fixed-indexed annuities are easy to understand. The advantage of a
Fixed-indexed annuity is that you can’t lose your money, regardless of index performance, unless the contract is surrendered during the early withdrawal period. Plus, your indexed interest locks in each year.

Fixed-indexed annuities offer you the power of 100%

Protection by guaranteeing:
• The interest credited to your annuity will never

Your annuity will never be negative
• You participate in a portion of index growth.
• Your indexed interest locks in each year.


With many top rated companies to choose from we can help you chose the perfect annuity tailored to fit your needs