- Do you suffer from fear of losing money in the stock market?
- Do you shake your head when you see how much interest you earn on local savings accounts or bank CDs?
- Do you worry that you won't have enough income during retirement?
- Do you wish that contribution limits didn't exist for IRA, 401K plans, etc.?
WHAT IS AN ANNUITY?
Traditionally, annuities are contracts from insurance companies that offer a stream of income in return for your premium paid. The income stream can be guaranteed to last as long as you live or it can be guaranteed for a period of time such as for 20 years. Should you live longer, the annuity continues paying out for the remainder of your life. Other variations exist.
Note that some people that own annuities never actually "annuitize" their policy to start the income stream. Instead, they use these policies for their wealth accumulation properties and safety of their capital. Be sure to read the Buyer's Guide.
ALWAYS CHECK THE SPECIFICS OF YOUR OWN ANNUITY CONTRACT(S)
There are three main "categories" that define annuity contract types. The frequency of premium payments, the annuity payout timeline, and the interest earning characteristic of the annuity can all be used to define the type of annuity contract.
- Single Premium Annuity
- Flexible Premium Annuity
- Scheduled Premium Annuity
- Immediate Annuity
- Deferred Annuity
- Fixed Annuity
- Equity-Indexed Annuity
- Variable Annuity
For more detailed information, we highly recommend reading the booklet from the National Association of Insurance Commissioners-
ANNUITY TAX TREATMENT
Income Tax from Annuities are Deferred which means that you won't pay tax on earned interest until you withdraw funds.
This allows you to earn more because of the power of compound interest!
THE ANNUITY BONUS
Many annuities offer a BONUS on new contracts. Typically, this is an extra interest amount credited to the value of your annuity. The bonus may be immediately vested or vested over time.
Do Fixed Annuities Come With A Lot Of Fees?
ANNUITIES ARE OFFERED FROM VARIOUS INSURERS, INCLUDING THESE CORE INSURERS:
Annuity Proposal / Consultation