Dont put all of your eggs in one basket. People often mistake this old saying by thinking if they buy different stocks or different mutual funds that they are buying different baskets. Theyre actually in one big basket the stock market. The same holds true with CDs, bonds, and annuities. No one investment can make a complete investment plan.
This section of our site will tell you about one basket that you should consider to protect your nest egg. The goal of this site is to not only protect you from an untimely death, disability or medical condition, but to protect your money from volatile or low-yielding investments as well.
Here are just a few of the reasons to consider an annuity:
Security - The stock market may go down. Interest rates may drop. But your deferred fixed-rate annuity or deferred equity-indexed annuity interest rates will never fall below their guaranteed minimum.
Tax-deferment - You only pay income taxes on the gains in your annuity when you withdraw your money.
Competitive Interest Rates - The interest you earn is comparable to other investments with a similar risk level.
Protection of your Principal - Annuities are one of the few tax-advantaged investment alternatives that generally guarantee the return of your principal (usually).
Guaranteed Income for Life - Choose a lifetime payment option for your immediate annuity and you can receive monthly payments for the rest of your life (option not required).
Triple Compounding - Your premium earns interest, the interest earns interest, and the money you save by deferring tax payments earns interest.
Avoid Probate - Any death benefit will be paid directly to your designated beneficiary(-ies), without the publicity, delays and costs of probate.
An annuity is a contract between you, an annuity owner and an insurance company. They can be purchased with a single lump sum or multiple contributions over time. Your lump sum payment can be made from existing savings, IRAs, an inheritance or a 401(k). Unlike other investment alternatives such as certificates of deposit (CDs), you can usually withdraw some percentage of your annuity fund every year without paying a surrender penalty.
Read on to see which annuity is right for you and remember our phone number is always on the screen if you need our help.