Annuities
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There are many different types of annuities to choose from. Below is a list of some of the most common annuity types and some information to help you decide which annuity is right for you.
CD Type Annuity
CD-type annuities are guaranteed interest rate investments issued by insurance companies. Since they pay a locked-in interest rate for a specified term, they are often compared to CD's as "CD-Type." Like CD's, you put your money in and then collect your interest. During the term, you have partial access to a specified withdraw of principle and access to your interest immediately as income. At the end of the term, you have full access to your principal and interest without penalties. There are many different advantages to CD type annuities. Tax deferral and avoiding probate at death are the 2 major advantages CD type annuities have over traditional bank CD's. [more..] Fixed Annuity A Fixed Tax Deferred Annuity is a contract between you and the insurance company that will provide a guaranteed interest rate return to your account. The interest rate may be guaranteed for one year or for multiple years during the specified term. This money will always grow tax-deferred until you take it as an income stream or make a withdrawal.[more..] Fixed Index Annuity A Fixed Index Annuity is an annuity that shares in the upside potential of stock market returns while eliminating any downside risk in the event of market losses to the original principle. This enables the buyer to share in market-like returns during a "bull" or up market, while completely protecting the investment from any risk in the event of a "bear" or down market. FIA's are valuable tools in planning to combat inflation and allowing for safety and growth for a portion of your retirement portfolio.[more..] Immediate Annuity A single premium immediate annuity, or SPIA, is a product that was created solely for one purpose, to provide a predictable and dependable income stream to the policyholder. These payments can be for a specific period of time or they can be guaranteed to continue for the remainder of your life. You even have the option to guarantee both.[more..] Split Annuity A Split Annuity is a combination of an Immediate Annuity and a Deferred Fixed Annuity that provides a fixed income stream while guaranteeing that your original principle is returned to you at the end of the annuity term. There are many different variations of split annuities. The best feature of a Split Annuity is the flexibility it gives your qualified representative to design the program to fit your specific needs at the time of purchase regardless of the economic environment. [more..] |