Annuities offer a secure way to grow your savings and guarantee future income. With tax advantages and protection from market losses, they can be a valuable part of your financial plan.

How Well Have Your Investments Been Doing Lately?

Have you checked in on your investments recently? It’s essential to make sure your money is working as hard as possible for your financial goals. While some investments may leave you vulnerable to market swings or provide low returns, annuities offer a unique opportunity to enhance your portfolio with key benefits that ensure growth and stability.

Think About What Annuities Can Do for You:

One of the most important aspects of annuities is that they protect your initial investment. You never have to worry about losing your principal due to market downturns.

With annuities, you lock in growth every year, regardless of market performance. This guarantees that your money will continue to grow even when other investments face losses.

Annuities typically offer higher returns compared to traditional savings vehicles like CDs. This means better growth potential without sacrificing safety.

Annuities offer tax deferral on gains, meaning you don’t pay taxes on the interest or growth until you withdraw the funds.

Many annuities come with flexible withdrawal options, allowing you to access a portion of your money without penalties, while the rest continues to grow.

A key feature of annuities is the option to convert your savings into a steady income stream for life. This means you can retire with peace of mind, knowing you’ll never outlive your income.

Fixed Income Annuity (FIA)

Fixed Indexed Annuities (FIAs) offer growth potential linked to the stock market while protecting against losses. Essentially, you get to enjoy stock market gains but avoid participating in the downturns. With an FIA, this is exactly the situation. You benefit from market gains but never face the risk of losing money during downturns all while locking in your gains each year.

Annuities: A Sound Investment for Some of Your Money

Annuities provide a balanced and secure investment option, making them a valuable part of a diversified portfolio. While they might not be the answer for all your money, they offer stability and peace of mind for a portion of your savings.

An annuity is a contract between you and an insurance company. In its simplest form, it guarantees a fixed interest rate, usually higher than CDs, savings accounts, or money market accounts. What makes annuities particularly attractive is their tax-deferred status. You don’t pay taxes on the interest or capital gains until you withdraw the funds. This is why they are popular among future retirees.

When it’s time to withdraw, the tax treatment depends on how the annuity was purchased. If purchased individually, taxes are owed on the earnings. If it was part of a qualified retirement plan (such as a 401(k), IRA, or TSA), then the withdrawals are taxed at ordinary income tax rates.

Annuities offer a valuable balance of safety, growth, and tax advantages, making them an appealing choice for individuals looking to secure their financial future.

Annuity FAQs

A true bonus is an upfront percentage added to the account value, meaning it is real money that can be withdrawn under the terms of the contract. A benefit base bonus, on the other hand, is only used to calculate future income and does not increase the actual account value available for withdrawal.

Annuities grow tax-deferred, meaning you do not pay taxes on gains until you withdraw funds. Qualified annuities (funded with pre-tax dollars, such as from an IRA or 401(k)) are taxed as ordinary income upon withdrawal. Non-qualified annuities (funded with after-tax dollars) are subject to taxes only on the gains, while the principal portion is returned tax-free.

A SPIA provides immediate, fixed income payments in exchange for a lump sum, with no access to the remaining principal. A GLWB rider, available on deferred annuities, allows income withdrawals while keeping the remaining principal accessible, providing flexibility and potential for continued growth.

No, annuities are not FDIC insured. However, they are backed by the financial strength and claims-paying ability of the issuing insurance company. Each state also has a guaranty association that provides a level of protection in case of insurer insolvency.

Many annuities have no fees unless optional features, such as income riders or enhanced death benefits, are added. Fees can enhance benefits and growth potential, but it is important to understand that some fees, such as those for riders, are deducted even if the annuity earns zero returns.

Yes, most annuities offer a death benefit that ensures any remaining account value is passed on to beneficiaries. Some contracts include enhanced death benefit options for an additional cost.

Surrender charges apply if you withdraw more than the penalty-free amount within the contract’s surrender period, typically ranging from 3 to 10 years. These charges decrease over time and eventually disappear.

Annuities pay commissions to the agent, but they do not come out of your investment. The insurance company pays the commission separately, ensuring that 100% of your funds go into the annuity.

No, lifetime income guarantees ensure that payments continue for the rest of your life, even if your account value reaches zero.

Many advisors focus on assets under management (AUM) and may not offer annuities because they don’t generate ongoing advisory fees. Additionally, there are misconceptions about annuities being expensive or complex, though modern annuity products offer competitive benefits and flexibility.

No Obligation Consultation

While CDs offer safety and predictable returns, fixed annuities provide greater growth potential, tax advantages, and the option for guaranteed lifetime income—making them a stronger choice for long-term financial security. Whether you’re planning for retirement or looking to preserve and grow your wealth, a fixed annuity can offer the flexibility and protection you need. Explore your options today and take the next step toward a more secure financial future.

Need more information? We’re here to help!

Top Annuity Bonus Rates

5YR: 9%, 7YR: 17%, 8YR: 10%, 9YR: 10%, 10YR: 23%, 12YR: 15%, 14YR: 27%, 15YR: 20%

Top MYGA Rates

1 year: 4.25%, 2 year: 5.10%, 3YR: 5.50%, 4YR: 5.50%, 5YR: 5.60%, 6YR: 5.65%, 7YR: 5.60%, 8YR: 5.35%, 9YR: 5.30%, 10YR: 5.65%, 20YR: 3.85%

Need More?

Additional Insurance Help

Learn More About Annuities

Insights

Visit Our FAQ’s To Get Answers For Your

Questions