Annuities come in different shapes and sizes offered by more than 65 companies. Some have high fees, some have low fees and others have no fees. People typically purchase an annuity to create a monthly check for life, for potential growth without risk of losing money, to provide a benefit for long term care, to leave a legacy for children, to earn a higher rate than bank CD’s and IRA’s with tax advantages and to avoid probate.
Fixed Annuity: This earns a fixed rate for a specified term for tax deferred growth. Interest can be withdrawn for income. Immediate Annuity: This pays a fixed amount for five years or more to supplement Social Security. Variable Annuity: This product is tied to the stock market, but you can both earn and lose money based on market performance. Fees generally range from 2% to 5% annually. Be sure you fully understand the terms before investing or get a second opinion on the one you own.
Fixed Index: If the market goes up, you share in the growth of the funds selected. If the market drops, there’s no risk of losses and you keep prior gains. It only goes up, never down. With some companies, you can add an income for life benefit to subsidize Social Security or to replace lost income if you or a spouse dies. You can add a benefit for health care (Long Term Care) without underwriting. Heirs will receive all money left in the account upon your death.
The right annuity can help you achieve your goals and give you financial peace of mind. Before you commit, call us for an Annuity Comparison Report to use the facts to select which is best for you. Already own one? Call us to receive an Annuity Analyzer Report. You may be able to trade up your annuity early without penalty or taxes.