Annuities

Guaranteed Safety

Money and Savings
WHAT IS AN ANNUITY? 

By Definition:  1)  a fixed sum of money paid to someone each year, typically for the rest of their life.   Example:  "My pension will pay me $60,000 per year until I die."

2)  a form of insurance or investment entitling the investor to a series of annual sums.   Example:  "I put $100,000 into an annuity that pays out $6500 per year for the next 20 years.  That will pay the annual property taxes on our home.  One less thing to worry about."


TYPES OF ANNUITIES:   Immediate, Deferred, Variable, Fixed, Index

Source:  Life Insurance Companies

IMMEDIATE ANNUITY:   Converts a lump sum of cash into an immediate income stream

DEFERRED ANNUITY:   
Grows, may accept additional funds, may or may not be annuitized (converted into payments)

FIXED ANNUITY: 
 Earnings are contractually guaranteed

INDEX ANNUITY: 
 Earnings are based upon a market index, yet not subject to negative market returns

VARIABLE ANNUITY:  Underlying investments are subject to both market gains and market losses
WHO SHOULD CONSIDER AN ANNUITY? *

•  Someone who wants to convert a lump sum of money into a secondary source of income.

•  Anyone blessed with good health and good genes, who could possibly outlive their savings 

•  The type of person who likes to budget and know with absolute certainty that a certain amount of money is coming in no matter what.

•  Someone who likes tax-deferred growth on their savings

​•  Anyone looking into various savings or retirement strategies 

•  People who do not need all of their money liquid

•  Someone inclined to leave a structured inheritance behind

•  A person who might like the idea of "bonus money"


* not all of the above apply to all annuites, including variable annuites whose underlying investments can lose value

SUITABILITY:   An annuity may be desirable for a number of reasons; however, if a person does not meet suitability standards set forth by the insurance company or the industry (based upon age, health and financial status) then we do have another similar option.  
Discount Payouts™
 
One-of-a-kind fleeting opportunities to purchase someone else's cash payout.
 
It could be from a lawsuit, lottery winnings, pension plans or personal annuities.  
 
Payouts could begin immediately or could start several years or even decades into the future.   Payouts could be in one lump sum or in monthly or annual installments.    Payments may never change or they could increase on a particular date.
 
Example #1:  $162,000 now will return $284,000 in one lump sum April 27, 2026
 
Example #2:    $45,000 now will return $130,880 via $1558/month x 84 months Aug 2034 to July 2041
 
Example #3:  $515,000 now will return $1,300,000 via 450 monthly payments from March 2016 to July 2053 
 
Note:  Examples are slight modifications of real life cases and may not reflect current availability.
Secondary Market Annuities  thinking man machine
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Purchaser will receive paperwork regarding what portion of income payments are taxable as gains; nevertheless, you may wish to consult with a tax advisor regarding possible implications.  
•  Not FDIC insured    •   May lose Value   •   No Bank or Credit Union Guarantee
•  Not a Deposit   •   Not insured by any federal government agency or NCUA/NCUSIF

Annuities can be bought, sold, or exchanged.  Monies can be qualified or non-qualified.
Should you buy an annuity?  We have annuities for sale.  Do you have an annuity but wish you had bought a different one?  We may be able to help with a 1035 exchange into a new annuity.

Video:   Tony Robbins discusses annuities and the benefits they bring to the wealthy
IS AN ANNUITY RIGHT FOR YOU?
FOR SOME PEOPLE, THE ANSWER IS YES
 
Financial advisors need to keep in mind the personality of their clients.  Not just risk based upon age.   More young adults are purchasing annuities because they remember the crazy financial circumstances their parents endured and don't want to live through that again.  So you need to ask yourself, if I am to diversify my time, energies, and finances - would an annuity make sense for me?  Maybe for a portion of my money?  There are hundreds of annuities, and it could be that one is right for you.   Give us a call, leave a message, and a licensed agent will return your call to work through the possible pros and cons with you.