Welcome to Annuities
Most people don’t know about Annuities.
Creating another steady income check.
Just like you enjoyed when you were working.
One that will pay you for your lifetime.
Remember on an earlier page,
I mentioned about education for my clients.
Annuity education by design has often been negative by those in the brokerage business.
In the interim, many have lost life savings that otherwise would have been safe in an annuity.
You may already have 1 or more annuities for your income. Your Social Security is an Annuity. Your Pension is an Annuity. You have a cash settlement? You have an annuity. They are often not even recognized.
There are 2 types of annuities FIXED and VARIABLE.
We only provide a Fixed type of annuity. There are several variations that all provide the safety and security for which they are designed to provide.
When we help you meet your goals, we will recommend 1 or more options. Brokers will try to sell you a Variable Annuity. I stopped selling them a very long time ago.
A dwindling number of employee’s have a Defined Benefit Program that provides a pension for their lifetimes. A common recommendation from our parents was to “get a job where you can have a pension”. Without knowing that they were recommending an annuity, but they did know the security of it.
Create your own Pension
A pension is an annuity!
Have you been restricted by the limits of your contributions?
A better option.
With an annuity, you can contribute as much as much as you wish. Purchase as many as you wish. Pass to a spouse or other beneficiaries outside of probate. Pass to heirs who may take lifetime payments. Like an IRA, you pay no taxes until you elect to remove funds. The IRS does not tell you that you have to take deductions from an annuity.
The Defined Benefits (DB) became an unmanageable liability for companies. They began the transfer to providing the 401K type plans. [See the page for 401K/IRA. A video is linked]
The appeal of the DB plans was the guarantee of Lifetime Income. That benefit can now only be found with an annuity. No market based investment can guarantee the lifetime income. We can help you transfer that 401 to an annuity that will provide the lifetime income for you.
Lifetime Income Riders. This is a rider that can be attached to your purchase of an annuity. Called several names such as GWB, they provide to your annuity a separate calculation for future income. The “base” annuity will have its growth defined by the type of annuity it is. The Rider essentially will guarantee a growth of a certain percentage, regardless of any other conditions. No other instrument of investment can provide this guarantee.
There are several ways or designs to create your income. Review the Annuity Booklet for more information.
This chart shows how a $100,000 purchase will grow over a period of time. The growth occurs even if every other indicator of growth is zero. The current rates being offered will vary. Often a purchase bonus is offered that is not factored into this chart.
This is only one of the methods available with Annuities to have an income. With an Income Benefits in the annuity, your growth is guaranteed. Regardless of any market conditions. The booklet will describe all 3 methods. The one that is best for you will depend upon your goals.
For more information. View the Booklet Annuities.
Safety – is the most common reason to purchase an annuity. Regardless of the return, the savvy investor wants to know that the principal will never go down.
CD’s Many people want a CD for the safety. They know the bank will always be there. The basic Fixed Annuity is quite similar to the CD in structure. Both offer a percentage of return for a specified time. Except the CD is below 1% and the Fixed Annuity is currently around 3%
Inflation. Over time, inflation has averaged 3%. If you are a purchaser of CD’s. Your purchasing power goes down the longer you hold a CD. Purchasing power is defined as the ability to purchase the same item in the future with the equivalent amount of money as today.
As you can see in this chart. A $25,000 CD purchase will lose $6,000 in purchasing power.
Fee’s – Normally you will not have any fee’s. 100% of your purchase is receiving interest. At your option, you may add benefits or riders that will have a fee. For example the Income Rider which is most common. That generally has a cost of less than 1%. The insurance companies will compensate the representatives rather than charging the client.
Roll overs – Annuities are an exceptional place for an IRA, either Traditional or Roth. ERISA provides some guarantees. Were you to roll over a 401 or IRA with ERISA protections, they are lost when you go to a market based investment. The Annuity will offer protection that you will never lose your principal due to market conditions.
We have available a series of booklets for your benefit. You may read online, download or receive a hard copy if you prefer.
To view the Annuity booklet, Click on the