Indexed Annuities

Indexed Annuities

Indexed Annuities give the consumer the potential Up-Side Gains of the market without the Downside Risk.

  • Indexed Annuities are FIXED annuities.
  • Indexed Annuities guarantee no loss of principal due to marketing fluctuation.
  • Indexed Annuities DO NOT expose your money to risk!
  • An Indexed Annuity may or may not be the right choice, depending on your financial planning goals.

Indexed Annuities can give you choices as to where, when, and for how long you want to keep your money in a market index or a fixed rate.

An Indexed Annuity is a wise choice that more and more Americans are making to assure that they will have more money in their retirement years.

An Indexed Annuity can be set up using funds from either Qualified or Non-Qualified accounts.

What are Qualified Accounts?

Any pretax dollars such as a type of IRA (Individual Retirement Account), 401 (k)’s from previous employment, 403(b)’s (retirement accounts set up through employment with a non-profit organization), and any other account considered to be Tax Qualified by the IRS.

What are Non-Qualified Accounts?

Any post dollars such as a type of personal account (non-IRA). These may include CD’s, checking, savings, money market accounts, stocks, bonds, or mutual funds.

Do Indexed Annuities grow Tax Deferred?

If your money is currently invested in CD’s, Money Markets, Mutual Funds, etc. chances are you are receiving a 1099 or other tax form at the end of each year for the gains in that account.
You will not receive a 1099 for the gains within an Equity Indexed Annuity as long as those gains stay in the contract.

Income Rider

Fixed Indexed Annuities now come with an optional income rider that allows for the client to receive income as long as he or she lives, without requiring annuitization.  Unlike annuitization, the client is still able to access their principal account balance and if any money remains in the annuity value once the client passes away, the remainder is paid out to their named beneficiaries.  Some income riders may offer an enhanced death benefit or a range of other additional features that may increase a client’s income in case of nursing home care or terminal illness.

An Indexed Annuity, is it the right choice for you?

What accounts are right for Indexed Annuities?

For mid-range and long range savings goals (five years or longer), whether in an IRA or just savings, and Equity Indexed Annuity might be an excellent choice. Note:There are penalties, which vary from one annuity to another, for early surrender, and there are Federal Tax penalties for withdrawals before age 59 1/2.

What accounts are not right for Equity Indexed Annuities?

Equity Indexed Annuities are not the place to put your short-term savings goal. If you are saving money to buy a house, a boat, or any major purchases in the short term, and Equity Indexed Annuity is not the place to put those funds!

New York Times Article “The Unloved Annuity Gets a Hug From Obama.”
Click Here