Annuity Insurance

Posted August 6th, 2010 by admin

Annuity insurance coverage award is really a way for individuals to get cash inside a tax-deferred accounts that will be paid upon their own death. These annuities can take a variety of types, such as fixed and variable. It is important that you should understand whenever possible about this kind of expense before you decide to really take part in it. Although there might be many queries you have, here are some from the more prevalent queries which have been requested previously. These types of can help to give you a more rounded look at associated with insurance coverage annuities and what they can do for you.

One of the more common types of insurance annuity guidelines that you might hear about is known as the deferred award. Using the deferred award, you are able to take the cash out anytime, either in part or perhaps in mass. One of the benefits of using this type of annuity is the fact that you won’t pay any taxes on the cash until you actually withdraw it. During the time of withdrawal, you will need to spend tax and could also be penalties if you pull away the cash when you are under the age of fifty nine 1/2. You may also defer the money until the later date anytime it will likely be frequently fond of you as a income source.

Another choice that should be made is whether or not you are going to select an insurance annuity that’s either adjustable or fixed. The difference among these two is the fact that the adjustable policy is going to be invested in a number of various ways and you may observe the quantity of your expense proceed up and down, depending on the market and the kind of investments that are used. Inside a repaired plan, you’re guaranteed mortgage loan, as well as knowing in advance time when the interest will be added to your account.

There’s also a large amount of independence that is available anytime you have an insurance coverage award as well as changes might be created by contacting the insurance organization as well as filling out the proper documents. This may include altering receivers, in addition to changing the type of payment which is going to be acquired. Together with that, you may even possess choices that are offered for pulling out money earlier from the policy but typically, you’ll have to pay it back along with curiosity.

Deferred Annuity

Posted August 6th, 2010 by admin

The definition of an award is actually “a yearly grant or even allocation, or even as an investment of cash entitling an investor in order to a number of equivalent yearly sums more than a mentioned period.”

The single most important function of an award would be to supply a series of obligations over a period of time. Most agreements spend the actual annuitant a payment over their own lifetime because mentioned in the plan. There is no other investment vehicle that can supply income for a lifetime and it is a unique feature inside the world associated with annuities.

A good annuity can make obligations for as long as the annuitant life as well as protects the dog owner or annuitant from outliving their money. Even though all of the money in the agreement is used upward, the insurance coverage organization will still make obligations so long as the actual annuitant or even owner is still in existence.

Commercial annuities are provided by insurance providers and therefore are sold through insurance coverage brokers, banks, as well as stock brokerages. Who owns the actual contract will pay the insurance company whether lump sum payment payment or if the product permits, additional premiums can be created. This is known as a flexible high quality award (FPA).

Build up Time period or even Deferral Period

The actual build up time frame is actually once the award is actually growing or accumulating interest.

Payment Period

Here is the period of time when the insurance coverage organization starts payments towards the proprietor or annuitant. The annuitant is going to be offered several choices for their own payment. The annuitant may choose an income for life or perhaps a repayment with regard to two decades only.

Competent or even Non-Qualified

Qualified annuities are simply as an IRA, Roth IRA, or your 401K. The money is not taxed. Whenever you consider the cash out, the actual proceeds is going to be 100% after tax at your taxes rate. If you take money out prior to fifty nine ½, you’ll receive a good Irs fee. Annuities tend to be retirement vehicles and therefore are treated as such.

Non-Qualified (NQ) efforts to some NQ award aren’t taxes insurance deductible. The cash can come from a Cd, checking account, mutual funds, stocks, along with a 1035 exchange through another NQ award.

Instant Annuities

A sudden annuity begins making regular obligations right away or even inside a year of buying the award. These types of annuities are usually bought having a lump sum as well as obligations can be made monthly, quarterly, or even annual to the annuitant. Payments can be created for life, ten, 15, 20 years certain, and life. The dog owner offers may payment options.

Deferred Annuity

A deferred award is a to which the award proprietor defers or flight delays the instalments till a later date later on. A deferred award accumulates interest for some many years. A few owners need not consider payments as well as wish to defer payments so they will not be subject to taxes on money they do not require.

Examples of Deferred Annuities:

Fixed Annuities

Fixed Index Annuities

Variable Annuities

Shared Characteristics

Retirement earnings or even obligations

The process of buy is the same

Exact same payment choices are available

Accumulation periods

Important Distinctions

The actual distinctions among variable as well as repaired annuities tend to be:

No assure associated with primary

The owner bears any kind of investment danger

Adjustable annuities tend to be regulated by the condition and government

Robert Eldridge holds over a decade of expertise as a multiline agent/wholesaler within multiple states as well as currently acts on the regular membership local authority or council of the National Organization of Insurance coverage as well as Financial Advisors.

Fixed Annuities

Posted August 6th, 2010 by admin
Lending options, like anything else, develop with time. Financial institutions are constantly working to produce new products that will give them the competitive edge against other companies. The market these days is overloaded along with too many new, fancy products that tend to be really untested in the long run.
A few quite simple economic and actual laws control exactly how money functions. In an effort to appeal to much more customers as well as crush the competition, insurance providers hire mathematicians in order to tweak those laws, formulas as well as equations to create a product that appears like a brand new defacto standard. So that you can take into account excess risk exposure, the fine print in the agreement will often make up for anything that seems to good to be true.
I am reminded of the great quotation through Warren Buffett: “Beware geeks bearing formulas.”
A lot more can be achieved if the investor stays with simple items and a better strategy. Whenever drive comes to push, repaired annuities can perform as well or better for a solid pension strategy that those fancy listed and adjustable products. With a fixed award, you know what to expect and that is exactly what you’ll get. Easy products do this.
Fixed and immediate annuities have been established for extended compared to every other award product available. And that is simply because they function. Right now, the new services might work but we have no idea that however. No one wants to head into retirement by having an untested item. That’s a lot like having faith in another person to bring along your own parachute.
What exactly is so great regarding Fixed Annuities? I will list several things.
Aggressive Interest Rates- Repaired annuities offer prices that exceed bank Compact disk prices as well as treasury produces. Additionally, all items come with a guaranteed minimum interest rate therefore the account will invariably grow, no matter what.
Earnings Options- Free withdrawal provisions allow a contract owner to access some from the account on an yearly basis without penalty. In addition, the majority of products can be transformed in to assured earnings for any specified time period associated with years or for life, your choice. Ny Life and also the Wharton Business School partnered to complete a study as well as instant annuities had been identified as the way to guarantee the greatest level of pension income.
Safety- 08 marked the disastrous year for the global monetary promotes. Lots of insurance providers prevented the turmoil due to extremely traditional management strategies. These types of institutions have to hold greater amounts of reserves than others within the financial industry. Due to this, numerous insurance providers continue to be very steady as well as lucrative. Also, each state has an insurance warranty fund which insures any deficits as much as $100,thousand, similar to the FDIC.
Is there the disadvantage to fixed annuities? Sure there is actually. The actual discussion should not be whether or not they tend to be bad or good, instead that they’re suitable for many and inappropriate for others. Timing is essential as well. Chances are that acne may benefit from using a fixed or instant award at some point in retirement, if the time is actually hosed up, the actual buyer might are sorry for the acquisition.
The problems using the award marketplace come mostly through under-qualified store assistants. There’s also plenty of products that work really nicely for that insurer and never therefore nicely for the buyer. It requires worksome work to be able to detect between a good contract and a not good one.
If a fixed award interests you, it is imperative which you look for a competent consultant. Find someone that knows the products they sell and the way to have used them appropriately. That may consider some extra work, your nest egg deserves no less.

Immediate Annuities

Posted August 6th, 2010 by admin
Immediate annuities had been very popular previously however their use offers declined dramatically in the previous few many years. This type of annuity is a great device for individuals who would like to possess a specific income more than a arranged number of years. One risks of getting a set earnings are that we now have absolutely no changes for inflation or even spectacular increases within living expenses.
Immediate annuities might and should be part of the your own profile but keep their usage to a minimum. Numerous conventional financial experts think that 25% to 50% associated with savings for pension should be location in to annuities. However, contemporary economists recommend that only 10% in order to 15% of the retirement fund should be invested in immediate annuities. The reason being from the high price of inflation is not remedied with regard to in annuities as in other forms associated with share vehicles.
Instant annuities can also be fitted by having an inflation driver. This essential raises your earnings from 3% to 5% every year.
There is a fairly steep charge associated with an inflation rider and when all is said as well as carried out you would really be taking a loss over time. An alternative is to blend a adjustable award with a For-life benefit. This particular offers all of the balance of the instant award but it enables you to withdraw up to 5% of the initial investment throughout your lifetime. This allows the buyer to keep up along with inflation.
Furthermore there is a step up options which progressively increases the quantity of income over a period of many years, generally one to five many years. This opens upward money which can be invested in shares, as well as bonds.
Both instant annuities as well as adjustable annuities tend to be assured for life. This means that even if you outlive your principle expense you will keep in order to draw an income in the exact same quantity.
However, if you die prior to the principle is completely utilized the surplus would go to the insurer. Another advantage of annuities is that you can use it to invest in negligence instances. Cash in annuities is actually think about insurance coverage cash. If you are a doctor, lawyer, architect, or even financial adviser, the cash you location in adjustable or even immediate annuities can not be taking from you.
If you have insurance with a company that will go below, annuities are a great choice. Cash is transferred from the insurance company to an award. You will generate losses, nevertheless the money that was lost may be used to off set future gets in the award at taxes period.
Annuities are not for everybody. Nevertheless, if you are looking for any great tax deferment plan or simply satisfaction for the long term pension, annuities may be just the right protection automobile for you personally.
Adjustable as well as immediate annuities are complex programs. Prior to deciding to buy possibly danger, risk tolerance, as well as objectives need to be arranged. It is always important to have a human resources plan before investing in the stock market. Adjustable annuities are just sold by prospectus which are generally misitreperted through the informal investor.

Annuity Rates

Posted August 4th, 2010 by admin

You might already have visited other award sites as well as utilized an award prices calculator or conferred with a good award rate stand. Are you fooled?

another is Were a person sure that the information about the actual range of annuities is at day?

• Do the actual annuity table or calculator consider all of the items on the market or even was it simply a selection?

another is Are you aware that specialist impartial award brokerages might acquire a wider selection of pension award options?

• Had been this a person annuity quotation or just an illustration?

• Did it promote particular annuity companies over others because they had been compensated greater profits by some businesses?

• Are the annuity companies capable of paying chatting many greater in the tables, or possibly possess many shown within an alternative way?

another is Are you aware that the award prices might change before your application actually experiences? Should you received a quote, had been it assured?

Updated through machines or even humans?

Did those websites use ’screen-scraping’ technology which retrieves as well as exchanges info through additional courses?

Based on Wikipedia, “Screen scraping is generally considered a good ad-hoc, inelegant technique, often utilized just like a “last resort” when not one other system is available. Besides the greater programming and digesting overhead, result displays meant for people to drink frequently change framework often. People may deal with this particular easily, however pc applications will often lock up or produce incorrect results.”

But let’s say the website reassures you, it is up to date?

Whether or not the annuity comparison table or even calculator had been 100% up to date as well as correct, were you aware that the stated prices may have no resemblance whatsoever towards the income that you will actually accomplish? The reason being your own award might increase because of circumstances as yet unknown to the website, i.elizabeth. a state associated with health, medicine that you might be taking as well as whether you’re a smoker or otherwise. A few award companies even bottom your long term income in your prior profession or in your geographical area.

Once again, let’s state that you simply do eventually find a site where every thing is up to date as well as functions correctly; are you aware at this time regardless of whether you would like an amount annuity, fixed-rate escalating annuity or even an rpi-linked rising annuity? Also, have you considered your partner’s, partner’s or dependant’s percent in your death? Have you thought about an unsecured type of pension, adjustable award or even purchased life annuity? There are a confusing variety of options.

Exactly what does the Fsa state about comparison sites?

Comparison websites have been heavily criticised in the media by the actual Financial services authority (Financial services authority) for his or her insufficient independence as well as imperfect info. Consumers frequently do not understand that they are not getting the whole picture.

The actual Financial services authority state “Some may consist of products that it may make money from in some manner, for example if you click to the actual provider.” Additionally they state that you ought to never buy a product just on the basis of what you see on their own tables. They recommend obtaining guidance prior to using their furniture.

(Take note how the details about annuities on this web page does not represent financial guidance. You have to consult an annuity broker for total info. “The argument towards annuity rate furniture and calculators” is an opinion only and you should not really depend on these details to make (or refrain from making) any choices regarding purchasing an award.)

Variable Annuities

Posted August 4th, 2010 by admin

Before investing in a variable award become knowledgeable what a adjustable annuity is and what it really will mean for you. Talk to your own broker along with other monetary professionals to ask queries. Understanding is power, or even in the case of pension preparing, understanding is actually cash.

While this article is a broad description of such a variable annuity is actually and how it operates always request a prospectus out of your insurance company, read it very carefully and make sure to request any kind of queries which you can think of. Be sure to evaluate the kinds of annuities as well as benefits in addition to costs as well as repayment choices of variable along with other annuities. Investing in a variable award means that you make whether individual or series of buy payments, for these types of payments the actual insurer indicators an agreement with you to create periodic payments for you possibly starting right away or at a future date.

There is a number of investment options for variable annuities. The ideals from the opportunities you choose vary depending on the performance of the opportunities. Generally the investment choices for a variable annuity tend to be shared funds invested in stocks, bonds, money markets or a mix of all of these. Whilst adjustable annuities are typically invested in shared funds, there are many important distinctions from a shared account and a adjustable award. First, variable annuities pay you in periodic obligations for the lifetime or even the lifetime of your spouse associated with named beneficiary.

This particular protects against you outliving your own assets after retirement. Second, adjustable annuities can have a death advantage which means that if a person die before you begin getting your repayments the actual insurer ensures that your partner associated with beneficiary will receive a specific repayment, usually in the quantity of your own purchase payment. Basically, this particular constitutes a variable annuity the no lose scenario, as the cash a person spent will be available to your loved ones following your passing away. 3rd, variable annuities tend to be tax-deferred investments. Exactly what which means for you is you can pay absolutely no taxes on the earnings gained on a purchase until you pull away your money. You can also transfer your money from one investment to a different one without having to pay taxations on a purchase then.

However when you do take the money from the variable award you will be subject to taxes about the earnings at regular tax rates, this means that so that you can benefit from the tax deferred advantages of the adjustable award you ought to purchase it as a lasting expense. The prospectus for any variable award is definitely an individual’s most important bit of info. The actual prospectus will explain about all of the investment choices, yield, and prices ad well as costs as well as charges incurred.

The actual prospectus will even let you know about the repayment options for your earnings and also the time frames. Read the actual prospectus very carefully before investing in a adjustable annuity, and think about all of your choices. A good award is the first step toward your own retirement income as well as you don’t want to make the wrong options and never possess sufficient earnings as a retiree.

Annuity analysis

Posted August 4th, 2010 by admin

For people considering an award, your choice process is really a challenging job. Interest rates perform an important role whenever grading a particular product. The actual labyrinth of knowledge available causes a person to lose confidence within the final decision.

There are some crucial interest rate components to focus on that should filter out the irrelevant info as well as make the decision procedure a great deal simpler. Because variable annuity analysis as well as equity-indexed annuities drift with the stock market, a broad concentrate on rate of interest components is unimportant. Let’s focus on Repaired Annuities.

You will find 4 crucial rate of interest elements in an annuity contract. This ought to help investors understand wherever to immediate one of the most attention.

Base Guaranteed Price: Here is the contractual minimum price how the award may deliver. This rate will vary from 1-3.5% other than regarding a CD-Type Award, that will lock better pay for that life from the contract.

Present Price: Each year an insurance company will announce the rate to be applied to in-force contracts. This keeps competitors in existence within the insurance coverage industry. Every organization is going to declare a price based on portfolio performance, future business projections as well as aggressive assessment. Finding a strong present rate is a great indicator of the organization’s monetary health and economic outlook in relation to the loan industry in general.

Bonus Price: Many contracts inject a bonus price as an additional teaser. Certain annuities offer exorbitant bonus deals. Several elements need to be considered when it comes to extra rates. Some of these rates are only credited from agreement maturity which adds an additional surrender cost if the award is actually cancelled earlier. Large bonus deals frequently lead to a lengthier surrender period due to the added cost towards the company. In many cases, bonus prices turn into no bonus at all. Verify all the agreement components for your pleasure prior to a bonus is recognized as.

Yield to Surrender: This particular presents the actual effective rate of come back projected throughout the agreement time period. It is also the actual best interest rate to think about. An advisor should offer the yield in order to surrender inside a current and assured minimal price basis. Calculating this particular deliver will fairly determine the validity of the extra price.

In addition to the major rate of interest elements, a few couple other things that should have consideration when looking for interest rates. These include the organization’s restoration rate history and bailout prices.

Renewal Price: Renewal rate background is an excellent indication of a company’s long-term performance. Historical prices could be coordinated to previous financial fertility cycles to show the way the specific company offers performed during numerous market situations. Rising cost of living as well as deflation are legitimate concerns which need to be addressed when considering a considerable cash expense over a long time. This particular is one of the better ways to check an annuity’s performance with regards to previous interest rate environments.

Bailout Price: Not all annuities provide a bailout rate. This can be a element of high quality contracts offered through some really steady companies. The bailout minute rates are generally arranged simply over the base guaranteed price. This allows an investor to cancel the actual contract free from fee if the announced interest minute rates are at or beneath the bailout price. This particular offers additional independence to the agreement holder as well as opens up options for placement of the money without the usual price of surrendering the actual award.

This particular essentially sums up the things an individual needs to consider when looking for interest rates within annuity agreements. Award prices continue to be just one of the many elements which a person needs to understand prior to the confident buy can be made.

Annuities are extremely adaptable financial products which will play an growing role in the financial preparing landscape. Selecting a item, nevertheless, provides a distinctive challenge because of the hundreds of items a person has to think about.

Award Straight talk wireless offers laid out the guidelines with regard to suitability as well as product selection. Visit the site with regard to a summary of all necessary agreement elements and the goal evaluation required to make an informed buy.


Posted August 4th, 2010 by admin

An annuity is an investment you are making via some insurance company. This represents a contractual relationship between a person and the organization. And, even though offered by just the insurance coverage industry, annuities possess little, if anything, that is similar to coverage. Annuities tend to be promoted and offered through insurance offerers, banks, cost savings & mortgage (S&L) institutions, broker agent companies, financial planners, as well as expense advisors.

Whenever you buy, or even invest in, an award you are given particular assurances by the insurer. These promises rely on the company issuing the contract (the investment) and the type of award chosen. There are three methods to classify an award: (one) how the cash is spent (fixed-rate or adjustable), (two) when earnings are desired (immediate or even deferred), and (three) in the event that additional charges can be added to the investment (flexible-premium or even single-premium).

How the cash is spent

A fixed-rate annuity is actually much like a bank certification associated with down payment (Cd). The buyer is actually assured of the assured rate associated with come back for a specific time frame. Usually, the actual lengthier the time frame, the higher the rate of interest. Just like a bank, some insurance company may offer a price of come back that seems competitive than its friends provide. Rates may be secured set for 1 to 10 years, with respect to the award agreement.

A adjustable award is comparable to a mutual account family. The actual investor selects from one or more various expense portfolios, known as subaccounts. Portfolio options may range from ultraconservative (a cash marketplace accounts) in order to very aggressive (Pacific Basin Stocks). The buyer decides the way the cash ought to be allocated and may make changes at any time.

When Income is Preferred

The actual investor (known as the actual agreement proprietor), decides if and when income from an award is needed. A sudden annuity is perfect for a person or even few who desires to begin receiving monthly, regular, semiannual, or even annual tax-advantaged checks. The deferred award, which is one of popular type of award, is organized so that the expense grows as well as substances, tax-deferred, consistently. At some point in the near future, the agreement owner may decide to begin producing withdrawals.

Adding Money to an Annuity

If the annuity agreement enables you to add cash to your existing contract, the annuity is called having a flexible premium. Virtually all variable annuities tend to be flexible-premium. When the agreement enables merely a single, onetime investment, this is referred to as having a single premium. Just about all fixed rate annuities are single high quality. Traders who wish to include cash would have to fill out a new application as well as take the then-current rate of interest(utes). There is no disadvantage to having two or more single-premium annuities.

Variable annuities – historical averages

Posted March 19th, 2010 by admin

Writing about the historical returns of a variable annuity is a little tricky. First, you have to identify the annuity and the underlying funds. Each variable annuity has different results based on the fund results. Not every annuity contains the same mutual funds on the interior of the policy. Generally, you can find the historical returns of each fund and translate that to the funds contained in the annuity.

There will be differences in the fund returns from the non-annuity counterpart.  One of the differences occurs with the inception date.  The inception date for the fund inside the annuity is the date that the fund entered the product, not the date the company created the original fund. The fee structure is also different for the funds in the annuity.  Considering those factors, variable annuities’ returns vary dramatically, depending on the underlying returns on the investments inside the variable annuity.

Just because an annuity has excellent funds, it doesn’t mean that the annuity return will be better than another annuity’s. How the investor divides the money inside the annuity makes a great deal of difference. Younger investors tend to put more money in the stock market. On great years, they’ll see a substantially higher return than those that diversified funds and divided them equally amount fixed instruments, bonds and stocks.

The diversified investor that had an equal blend of stocks, bonds and fixed instruments are more likely to see either less loss or higher returns in market years where the bear ruled the market. The lower mix of stocks in the portfolio and higher amount of bonds often works well in a dropping market environment.

Many of the newer variable annuities offer a prepared portfolio based on risk and age of the investor. For those that want a mildly conservative investment, a blend of 50 percent stock and 50 percent bonds, historically the returns are approximately 7 to 8 percent. The more aggressive investor with predominantly stocks might see a 10 to 11 percent return over the lifetime of the contract. However, these returns also vary by the timing of the initial deposit and the withdrawal.

About Annuities

Posted February 24th, 2010 by admin

What is an annuity?

Annuity insurance is an investment vehicle, which allows the investor to save money, tax deferred for retirement.  Annuities receive tax deferral benefits like a 401k or IRA, but have no maximum investment amount.  Investors can purchase an annuity with a one-time payment, or multiple payments.  They can also purchase multiple annuities.  Annuities come in three general types and two payment schedules (which we’ll discuss below).

Is an annuity right for me?

Annuities can be a great part of an investment strategy preparing for (or during) retirement.  However they are not right for everyone.  Annuities do allow for tax deferred growth, however investors are not allowed to withdraw funds until the age of 59 and a half years old.  Withdrawals before this age will be penalized both by the IRS, and usually the insurer, so before investing ensure that you have proper liquidity.

Annuities can provide security for your spouse or children (like life insurance), and a steady income for retirement.  There are many reasons why people invest in annuities other than just the tax benefits, and differences between annuities and annuity companies can be large.  Ensure that you know exactly what you’re getting with your annuity.

What are my annuity options?

There are three general types of annuities and two payment options.  Of course, within each type, each annuity comes with its own unique benefits, length and options for the investor.  Let’s explore each type.

Immediate and Deferred Annuities

These terms refer to when the investor gets paid on the investment.  As you can guess, with an immediate annuity the investor starts receiving payments right away, and with a deferred annuity, payments are delayed for sometime before they start.  Once payments start they are usually set for a regular schedule, and they can be for a set amount, or varying amount.  To have the option to start receiving payments immediately, you must be at least 59 and one half years of age, withdrawals before that age will come with penalties (as annuities are for the long term, and for retirement).  Therefore, anyone under 60 has a deferred annuity, where the annuity is invested, and the investor is receiving tax deferred interest, but does not actually receive any payment.  People older than sixty can have an immediate or deferred annuity, it’s their choice.  Usually people defer annuities until they retire.

Fixed/ “Term Certain” Annuities

Fixed Annuities are very similar to bank-issued CD’s, but geared specifically for retirement savings.  A lump sum upfront provides guaranteed ongoing payment for life, or for a fixed period of time, usually 1-10 years.

Fixed annuities can usually be purchased for as low as $5,000; they are very low risk, have more liquidity than CDs, are tax deferred and usually offer higher returns than bonds, CDs, treasuries, or other low risk investments.

The type of annuity that’s right for you depends on many factors, including your propensity for risk and your personal retirement and family goals.

Variable Annuities

Variable annuities allow the investor to invest in all the things they normally would, stocks, bonds, mutual funds, and more, but with the tax shelter of an annuity.  Variable annuities can be as risky or as safe as you want them to be –  it depends on what you want to invest in.  When the investor receives payments, the amount they receive will go up and down depending on the return on their investments.  Variable annuities are often used by those that are still working and looking to build wealth for retirement, versus those already retired and looking to protect their nest egg.  If you have already used your 401k’s and have no immediate need for funds, a variable annuity can be a smart choice.

Fixed Annuities

This is the most common type of annuity, and it contains the safety and protection most people perceive an annuity to come with.  We also have a full range of fixed annuity quotes (do not be fooled by our site name).  Fixed annuities provide the investor with a fixed rate of return, for a period of time, or for life.  They can be like other safe investments such as low risk bonds, or bank CDs.  During the recession fixed annuities have become quite an attractive investment for many investors, as the rates of return offered have not decreased as much as other low risk investments.

Equity Indexed Annuities
A hybrid of variable and fixed, they place all or a part of your annuity into a stock index (not individual stocks).  That index is usually the S and P 500.  Equity indexed annuities usually come with a fixed option, allowing investors the option of switching over to a fixed annuity at anytime if they feel the market is going to take a downturn.  This type of annuity allows investors the opportunity to earn a higher interest rate, with a safe option.  Equity indexed annuities are considered relatively safe compared to variable annuities.  Unlike variable, assuming the index will never disappear and hit zero, you cannot lose your entire investment. are higher risk and offer the potential for a higher return than fixed annuities.  Variable annuities combine some of the features of the stock market with the tax protection and lifetime income offered by annuities.  They allow you to invest in a variety of portfolios, similar to mutual funds and can include stocks, bonds, and other types of securities.  You have the options to choose what to invest in and how to allocate your money.

They offer the same tax advantages as fixed annuities – gains are not taxed until you make a withdrawal.  Unlike fixed annuities, the amount of each paycheck you receive will vary and is not guaranteed.

Equity-Indexed Annuity

Equity-Indexed Annuities are a hybrid of fixed and variable annuities.  Linked to common stock market indices, it offers more risk and reward than a fixed annuity.  If the index grows, so does your payout.  However, if offers more safety than a straightforward variable annuity.  If the index declines, you’re protected against losses with a modest baseline rate.

In between the risk of fixed and variable annuities, they allow you to invest in the market without risking your principle.

To talk to a licensed advisor, see our “Get a Free Quote” page, and a trusted advisor will give you a free, no obligation call to answer your questions, discuss your options, and recommend a solution that may be right for you.