Annuities
Annuities offer you guaranteed income for life—in any market, good or bad.
WHAT ARE ANNUTIES ?
Annuities are contracts between you and an insurance company that can provide a unique combination of insurance and investment features.
Annuities complement other retirement plans and, depending on what type you select, they may provide guaranteed lifetime income, opportunities for tax-deferred growth, guaranteed yield, downside protection, market participation, flexible withdrawals, and legacy protection for your beneficiaries.
Types of Annuities and their benefits:
Life insurance policies generally fall into three categories: term, permanent, and final expense. Once you understand the difference, you can easily determine which is right for your beneficiaries’ needs and your budget.
Variable Annuities
A variable annuity is a long-term investment for retirement that offers tax-deferred growth potential and a variety of investment options. Variable annuities can offer a wide range of features including a guaranteed death benefit and income for life.
What factors should you be aware of when considering a variable annuity?
For variable annuities you will typically see insurance charges (pays for the guarantees that the insurance company provides), surrender charges (charge on an early withdrawal based on a the time period of the policy or cancellation of the policy), investment fees (pays for the management of the underlying investment options), and, if elected, fees for optional living benefits or optional death benefits (fees that pay for the guarantees that the optional benefits provide).
Fixed Indexed Annuities
If you're looking for principal protection with the potential to earn an attractive rate of return that is tied to the market, without being directly invested, a fixed indexed annuity may be a fit for you.
A fixed indexed annuity is a long-term investment that allows your assets to grow tax-deferred, and for an additional cost, offers an optional guaranteed lifetime withdrawal benefit (GLWB) that provides a guaranteed "retirement paycheck" for you and your spouse that is guaranteed to grow each year income is deferred (up to 10 years). The guaranteed income (your "retirement paycheck") is designed to help cover your essential living expenses, as defined by you, in retirement.
What other factors should you be aware of when considering a fixed indexed annuity?
A fixed indexed annuity may have withdrawal or surrender charges (a charge on an early withdrawal based on the guaranteed period of the policy or cancellation of the policy), and some contracts may impose a market value adjustment if you make a withdrawal during one or more of the guaranteed periods offered under the policy. Generally, any withdrawals in a given year during the initial guaranteed period that exceed 10% of your account value will be subject to withdrawal charges and/or a market value adjustment.
Withdrawals from a fixed indexed annuity will reduce the value of your annuity and can be subject to ordinary income tax. Withdrawals prior to age 59½ may also be subject to a 10% federal tax penalty.
Fixed Deferred Annuities
If you're looking for safety from market volatility, a fixed deferred annuity could be right for you. It gives you the security of a fixed guaranteed interest rate while the interest you earn is tax-deferred. If you'd like to explore this option, Schwab can help you choose the fixed deferred annuity that best fits your needs.
What factors should I be aware of when considering a fixed deferred annuity?
Fixed deferred annuities also have surrender charges (a charge on an early withdrawal based on the time period of the policy or cancellation of the policy) and some contracts may impose a market value adjustment, which may be positive or negative, if you make a withdrawal during one or more of the guaranteed periods you can elect under the policy. Generally, any withdrawals in a given year that exceed 5% - 10% of your account value (based on the contract you select) will be subject to surrender charges and/or a market value adjustment.
Exploring Annuity Options: Personalized Income Solutions
Understanding Your Annuity Choices
When considering an annuity, you gain control over various aspects of your income stream:
Income Timing: Tailor when you’ll receive your income, ensuring it aligns with your retirement or financial goals.
Income Amount: Customize the amount you receive, providing financial stability that matches your lifestyle requirements.
Protection Features: Explore options to safeguard your investments or assets within the annuity structure.
Beneficiary Coverage: Plan for the future by selecting potential beneficiaries who may benefit from your annuity, ensuring your legacy continues.
Why Choose Imani financial Leaders group ( IFLG) ?
Personalized Guidance for Informed Decisions ↗️
Our dedicated team at [Your Company] offers personalized guidance to help you understand these options comprehensively. We evaluate your financial goals, lifestyle aspirations, and future plans, enabling you to make informed decisions about your annuity.
Begin crafting your tailored annuity today. Contact our team to explore the various options available, securing a stable financial future that meets your unique needs.d
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