What Are Annuities:Annuities are long term investment products issued by insurance companies designed for retirement. AnAnnuity 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.
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 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 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.
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.
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:
I am licensed to provide Annuities for residents of the state of Texas. 1 All guarantees are based on the financial strength and claims-paying ability of the life insurance company. Withdrawals may be subject to Federal/State income tax and, if taken prior to age 591/2, an additional 10% Federal penalty tax. IRAs and other qualified plans already provide tax-deferral like that provided by an annuity. Additional features and benefits, such as contract guarantees, death benefits and the ability to receive a lifetime income are contained within the annuity for a cost. Please be sure the features and costs of the annuity are right for you when considering the purchase of an annuity. 2 Fixed annuities are not insured or guaranteed by the FDIC, Federal Deposit Insurance Corporation or any other government agency. Fixed annuities are backed by the claims-paying ability of the issuing insurance company. 3 Fixed Index annuity withdrawals do not participate in credits of index or interest. Federal law requires that withdrawals be taken first from interest credited. A withdrawal includes any partial surrender. All distributions from qualified annuities may be taxable. State premium taxes may reduce the final value of your annuity. 4 Variable annuities guarantees are backed by the claims-paying ability of Life Insurance Company. and do not apply to the principal amount or investment performance of a variable annuity's separate account or it's underlying investments. Variable annuities are sold by prospectus. Both the product prospectus and underlying fund prospectuses can be obtained from your investment professional. Before investing, carefully consider the fund's investment objectives, risks, charges, and expenses. The product prospectus and underlying fund prospectuses contain this and other important information. Read the prospectus carefully before investing.