|
Should You Consider a Fixed Annuity?
Fixed Versus
Variable Annuities
Deferred Annuities
A deferred annuity is a type of long-term personal retirement account
designed to help grow your assets, and provide a steady income stream once you
are retired. A deferred annuity has two phases: the savings and investing phase,
and the retirement income phase.
All of your earnings are tax-deferred, which means you don't pay any taxes on
your earnings until you withdraw your money, usually at retirement. Amounts
withdrawn prior to age 59½ are generally subject to a 10% federal income tax
penalty as well as ordinary income taxes.
Getting Started
You can make a single, lump sum contribution and add to it later, or you can
make multiple contributions over time.
Savings and Investing Phase
During the saving and investing phase, your assets are accumulated for
potential growth. A fixed deferred annuity generally offers guarantee of
principal and a guaranteed interest rate for a set period of time by the issuing
insurance company. Variable deferred annuities offer greater growth potential
and investment flexibility with a full range of stock and bond investment
choices, often with a fixed interest account.
Retirement Income Phase
During this phase, you have a choice of how to structure your income payments
to complement your other retirement income sources. You can choose systematic
withdrawals, take income as you need it, or convert your savings into a series
of steady income payments (called annuitizing your contract). You can elect to
receive these payments for a set time period, or can choose a guaranteed income
for life, a feature only available in annuities.
Guaranteed Death Benefit
Most variable deferred annuities provide a guaranteed death benefit, prior to
annuitizing your contract that guarantees your beneficiaries will never receive
less than the amount you contributed, less withdrawals, even if the markets have
declined. Many variable annuities, offer a choice of death benefits that can
increase over time, based on your account value. A guaranteed death benefit is
one of the insurance benefits which annuities can provide.
Types of Deferred Annuities
Fixed Deferred Annuities
offer a guaranteed interest rate for a set period of time. Your earnings grow
tax deferred until you begin to withdraw your income. Because your principal and
interest rate are guaranteed by the issuing company, it is important to consider
a strong, stable company that will be there tomorrow. The company generally
resets the interest rate periodically, but guarantees the rate will never fall
below a minimum rate stated in your contract.
You can have a fixed deferred annuity that accepts a single payment or one
that accepts multiple payments.
Variable Deferred Annuities
offer investment choice and flexibility. Variable annuities offer a range of
stock and bond investment choices that can provide higher returns than a fixed
rate account, but the returns are not guaranteed. Many variable annuities also
offer a fixed rate account. All of your earnings grow tax deferred until you
begin to withdraw them.
You have the flexibility to transfer among the investment choices within the
variable annuity tax free, and can often take advantage of dollar cost
averaging, automatic rebalancing of your account, and other investment
strategies.
|
Annuity Quote Request
The quote you have requested requires that you complete the following
survey as completely and accurately as possible. Once submitted the
information will be e-mailed to our office(s) and we will expedite your
request. This information will be kept confidential and will be used
for quote purposes only.
We look forward to serving you. |
|
|
| 
