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Fixed Indexed Annuities

Fixed Indexed Annuities (FIAs) are one of the best investment strategies for retirement which compliment your other sources of retirement income such as pensions and Social Security benefits. The top seven benefits of FIAs are;

  1. Safety of Principal Amount and Earnings (Removing Market Exposure).
  2. Guaranteed Retirement for Life Payments.
  3. Compounded Income with Deferred Tax Payment.
  4. Early Retirement with No Penalty.
  5. No Delay in Estate Distribution.
  6. Both Capped and Uncapped Market Crediting Options.
  7. Predictable Earnings 

Interested to know more about Fixed Indexed Annuities?

To hear Fixed Indexed Annuities click the video play button

Medicare 101

Fixed Indexed Annuities

Fixed Indexed Annuities (FIAs) are one of the best investment strategies for retirement which compliment your other sources of retirement income such as pensions and Social Security benefits. The top seven benefits of FIAs are;

  1. Safety of Principal Amount and Earnings (Removing Market Exposure).
  2. Guaranteed Retirement for Life Payments.
  3. Compounded Income with Deferred Tax Payment.
  4. Early Retirement with No Penalty.
  5. No Delay in Estate Distribution.
  6. Both Capped and Uncapped Market Crediting Options.
  7. Predictable Earnings 

Interested to know more about Fixed Indexed Annuities?

To hear Fixed Indexed Annuities click the video play button

Medicare 101

Fixed Indexed Annuity Riders

Now that you have learned about the benefits of a Fixed Indexed Annuity (FIA). Each annuity contract has several possible riders that can be used to add additional benefits to the owner. The rider that seems to be the most important to retirees is the “Life Time Income Benefit” which provides a stream of money paid to the annuitant even if that contract runs out of money. Unlike a traditional IRA, once the owner is out of money the payments during retirement cease. 

Other riders are for Long Term Care (Nursing Homes), Enhanced Death Benefits Payouts and Critical Illness . 

Interested to know more about Annuity riders?

To hear Fixed Indexed Annuity Riders click the video play button

Income Riders

Fixed Indexed Annuity Riders

Now that you have learned about the benefits of a Fixed Indexed Annuity (FIA). Each annuity contract has several possible riders that can be used to add additional benefits to the owner. The rider that seems to be the most important to retirees is the “Life Time Income Benefit” which provides a stream of money paid to the annuitant even if that contract runs out of money. Unlike a traditional IRA, once the owner is out of money the payments during retirement cease. 

Other riders are for Long Term Care (Nursing Homes), Enhanced Death Benefits Payouts and Critical Illness . 

Interested to know more about Annuity riders?

To hear Fixed Indexed Annuity Riders click the video play button

Income Riders

Custom Annuity Policy Review

If your Annuity is not performing as expected, or it is burdened with loads or fees or does not have the features that meet your current needs, then a “Custom Annuity Policy Review” should be done.

Interested in a Free, No obligation custom annuity review?

To hear Custom Annuity Policy Review click the video play button

Custom Annuity Contract Review

Custom Annuity Policy Review

If your Annuity is not performing as expected, or it is burdened with loads or fees or does not have the features that meet your current needs, then a “Custom Annuity Policy Review” should be done.

Interested in a Free, No obligation custom annuity review?

To hear Custom Annuity Policy Review click the video play button

Custom Annuity Contract Review

Frequently Asked Questions?

  • One of the benefits of having a Fixed Indexed Annuity is that this investment removes any down side market risks. Therefore your original contribution and all the accumulated earnings are protected or locked in against any market downturns or corrections.

  • A Fixed Indexed Annuity, especially one that offers accelerated payments in case of serious illness, can be a versatile and thrifty alternative or supplement to long-term care insurance. These Annuity provides additional riders to fund Long Term Care which usually are cheaper that a standalone Long Term Care policy.

  • No. In an annuity contract that carries a guaranteed Lifetime Income Benefit, the Carrier is obligated to continue your payments for the remainder of your life even if the contract value is zero. There are specific rules governing the benefit and must be adhered to as to not to violate this provision in the contract. You should have a meeting with your advisor prior to withdrawing any money so not to disturb this feature.

  • In Fixed Income Annuity, if you die before turning on your income stream, the entire balance in your contract is left to your beneficiaries. If you die after turning on your income stream, your beneficiaries would receive the account balance which has been adjusted for payments received to date plus any outstanding loans.

  • In general, gains (or earnings) which are withdrawn from fixed index or multi-year annuities are taxed as ordinary income, not as capital gains. If your annuity is invested with qualified funds, such as monies rolled over from a 401k or IRA, then the full amount withdrawn will be subject to ordinary income tax. If your annuity was funded with Roth IRA monies, and you have adhered to the requirements as set out by the IRS (maintaining the account for a minimum of 5 years and you have attained age 59-½), then all withdrawals are taken tax-free. The owner should always consult their tax professional before any withdrawals

  • To afford the benefit of downside protection and no risk to principal, you must be willing to give up some of the upside, meaning that you cannot get 100% percent of the market.
    A cap is the ceiling on how much of the market growth you get to keep. If the annuity has a 5%, then even if the market does 20%, you will receive 5%.
    A spread is a form of profit sharing between you and the insurance company. If the annuity has a 1.5% spread, you will receive hundred percent of the market minus 1.5%.
    A participation rate is another form of profit sharing. If you have a 60% participation rate, you will receive a 60% of the market.

ARTICLES
  • October 23, 2017
    How a Fixed Annuity Works After Retirement
    Read More

Frequently Asked Questions?

  • One of the benefits of having a Fixed Indexed Annuity is that this investment removes any down side market risks. Therefore your original contribution and all the accumulated earnings are protected or locked in against any market downturns or corrections.

  • A Fixed Indexed Annuity, especially one that offers accelerated payments in case of serious illness, can be a versatile and thrifty alternative or supplement to long-term care insurance. These Annuity provides additional riders to fund Long Term Care which usually are cheaper that a standalone Long Term Care policy.

  • No. In an annuity contract that carries a guaranteed Lifetime Income Benefit, the Carrier is obligated to continue your payments for the remainder of your life even if the contract value is zero. There are specific rules governing the benefit and must be adhered to as to not to violate this provision in the contract. You should have a meeting with your advisor prior to withdrawing any money so not to disturb this feature.

  • In Fixed Income Annuity, if you die before turning on your income stream, the entire balance in your contract is left to your beneficiaries. If you die after turning on your income stream, your beneficiaries would receive the account balance which has been adjusted for payments received to date plus any outstanding loans.

  • In general, gains (or earnings) which are withdrawn from fixed index or multi-year annuities are taxed as ordinary income, not as capital gains. If your annuity is invested with qualified funds, such as monies rolled over from a 401k or IRA, then the full amount withdrawn will be subject to ordinary income tax. If your annuity was funded with Roth IRA monies, and you have adhered to the requirements as set out by the IRS (maintaining the account for a minimum of 5 years and you have attained age 59-½), then all withdrawals are taken tax-free. The owner should always consult their tax professional before any withdrawals

  • To afford the benefit of downside protection and no risk to principal, you must be willing to give up some of the upside, meaning that you cannot get 100% percent of the market.
    A cap is the ceiling on how much of the market growth you get to keep. If the annuity has a 5%, then even if the market does 20%, you will receive 5%.
    A spread is a form of profit sharing between you and the insurance company. If the annuity has a 1.5% spread, you will receive hundred percent of the market minus 1.5%.
    A participation rate is another form of profit sharing. If you have a 60% participation rate, you will receive a 60% of the market.

ARTICLES
  • October 23, 2017
    How a Fixed Annuity Works After Retirement
    Read More