You Don't Know Annuities
What Are Annuities:
Annuities are long term investment products issued by insurance companies designed for retirement. An Annuity is an agreement between you and an insurance company to provide a stream of income typically in retirement. Annuities1 are key instruments used in Retirement Income Planning.
Annuities can offer:
- Protection from stock or bond market losses.
- Guaranteed streams of income for life.
- A steady predictable stream of income in retirement, much like a pension.
Some Additional Advantages of an Annuity include:
- Stock market participation for potential growth.
- Income tax deferral.
- Death benefits.
- Potential for that money bypassing probate.
- Potential protection from forfeiture of assets due to law suits for Texas residents.
- Ability to control who inherits your Annuity benefits and over what time period the Annuity is paid out to them.
- Fixed Annuities:2 Fixed Annuities offer a fixed rate of return, similar to a CD, Certificate of Deposit. They offer a guaranteed interest rate and principal return at maturity, and protection from stock market loss and volatility.
- Fixed Index Annuities:3 Fixed Indexed Annuities offer the safety of Fixed Annuities with the potential for better long term growth. Along with the potential for long term growth, you don't actually participate in the stock market, but get potentially part of it's returns.
- Variable Annuities:4 Variable Annuities offer return potential that is more in step with the capital markets, or stocks. With a Variable Annuity, you participate in the stock and/or bond markets with the upside and potential downside of both. However, you can purchase an optional 'rider' that can help to reduce the risk of market loss and lock in account highs for guaranteed income.
- The Accumulation Phase: During the accumulation phase, you are building up the your retirement savings, which have the opportunity to grow tax-deferred, like in an IRA account.
- The Income Phase: During the income phase, you will receive a guaranteed lifetime paycheck from your annuity helping you live your retirement the way you want.
So, in summary, an Annuity is an insurance product that can protect a portion of your retirement savings, and provide you with a steady and potentially increasing lifetime income in retirement. It is one of the many investment options that can be used in planning for a comfortable retirement.
Some of the many Life Insurance companies we offer Annuities from include:
|Hartford||John Hancock Life||Nationwide Life|
|John Hancock USA||Jackson National|