Home - Senior Annuity Alert
There are many details people don’t know about annuity products. Before you purchase an annuity, you will want to know whether or not an annuity can be of benefit to you.
Annuities offer guaranteed* benefits such as protection for your principal, helping ensure your assets will be there for future use.
An annuity is a contract between you and an insurance company. One purpose of the contract is to provide an income stream at a later date for the current premium(s) paid. Like any financial vehicle, annuities have pros and cons. An annuity might be a good choice for you if you are interested in protection from downside market risk and a life-long income stream.** Additionally an annuity may be right for you if you don't need access for some time to the amount of premium you pay. Other financial products could be preferable if you may need access to your money sooner.
An annuity may be a good choice if you have a relatively large amount of money you want to protect from stock market loss, while earning a steady interest rate, and paying low fees. Alternatively, if you only have a small amount of premium to pay into an annuity, the costs and fees may offset the
interest you would earn. Again, a different product or game-plan may serve you better in that case.
Annuities are secured by the financial strength and claims-paying ability of the company that issued it.
Insurance companies recognize that annuity-owners want growth, and annuities offer a steady guaranteed* interest rate. A fixed index annuity offers the potential for an increased interest rate linked to the rise of a specific stock market index. When the index goes down, your credited interest and principal do not lose value.
Establish your “pay money” before you spend your “play money” so you have no concerns each month about how to pay your bills: Just watch your bank statement for the annuity check.
The interest you earn on an annuity is not taxed while it grows, rather your principal and earnings grow tax-deferred until you withdraw money or start annuity payments. Then, if you purchased your annuity with after-tax dollars, only the earnings are taxed.
More Confident Retirement
Like any financial strategy or vehicle, annuities do not work well for everyone. Take a look and see what they may have for your unique situation. For many owners, the guaranteed* monthly income helps them live a more financially confident retirement.