The 401K Man's Annuity.World

Often times when hearing about or discussing annuities you can be met with someone's reaction that is either strongly in favor or completely against them. These reactions are often times based on a variety of things. The first is often a complete lack of understanding of the wide selection of available annuities. The next most common is simply a overzealous sales person who only offers one type of product which does not fit all. In other words not suitable for what may be your best interests. It is further complicated by the insurers or carriers that provide multiple annuities using multiple formulas and indexes who all follow their own rules as to how an annuity is credited, indexed and most importantly distributed after maturity making it terribly difficult for the consumer to grasp. 

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In today's world when people are living longer and facing a real risk of running out of money. Annuities can provide a lifetime stream of income contributing to their life's savings. This is there strongest point having a guaranteed monthly income that cannot be outlived. Annuities can be a significant part of your income planning strategy in retirement. Many times stock markets fluctuate too much with significant drops due to electronic trading. Annuities can provide enough of an income stream to meet the needs of retirees who are living longer. This is why annuities are recommended as an asset for retirement.

Depending what type of annuity you choose it can provide you with a regular fixed income for a lifetime or a specific number of years. There are two main classes of annuities available: deferred annuities and immediate annuities. For either type there are fixed rate annuities that guarantee a certain rate on your investment and variable rate annuities that offer more options. The right annuity for you depends on your specific needs. 

Deferred vs. Immediate Annuities

A deferred annuity is a type of personal retirement account that allows you to grow your assets on a tax-deferred basis for long-term goals, like retirement. There are two phases to a deferred annuity: the saving and investing phase, when your assets are invested for potential growth, and the retirement income phase, when you can choose how and when to receive income. 
Immediate annuities are annuity contracts that start the payout stage immediately after the owner purchases the contract. An immediate annuity does not actually go through an accumulation stage because of this immediate payout feature. Each payment that is made from an immediate annuity is a return of part of the investor's original investment and interest that is earned during the payout period. 

Difference between Deferred and Immediate

The key difference is that a deferred annuity is a long-term vehicle, designed to accumulate assets over time. When you are ready to receive income, usually at retirement, you can convert your savings to a steady stream of income that meets your needs. Immediate annuities are designed to begin making annuity payments right away or within a short time afterward. In addition, deferred annuities may be purchased with a lump sum or multiple contributions. An immediate annuity is usually purchased with a single lump sum contribution. 

Fixed vs. Variable Rate Annuities

The interest your investment earns can be based on a fixed rate or a variable rate based on stocks, bonds and money market performance. There are benefits and risks associated with each, so make sure you understand your options. Annuities are often downplayed or simply glossed over by many adviser's who are simply trying to sell you a different type of financial product, stocks, bonds, ETFs and more. The only product in the marketplace guaranteed not to lose you money is an annuity either Fixed or Indexed or a hybrid of either. Every other option leaves your money at risk. 

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Often times annuities are used for retirement purposes or to guarantee long term income. Annuities come in a wide variety of choices to help accomplish different retirement or financial planning goals depending on the stage of life where you may be and where you would like to be.

What you may decide to do with your retirement savings,  will likely be one of the most important financial decisions you ever make.  We are here to help everyone arrive at the best possible decision relative to their particular situation.

 

An annuity can provide you with guaranteed monthly income that you can’t outlive. It can provide you with guaranteed monthly income that’s protected and can last for as long as you live. The guaranteed lifetime income from an annuity can be used to supplement your other sources of retirement income, such as income from your savings, investments and Social Security. There are actually many more annuity choices available to you here than listed on our website. Request information from us below. We offer more here when you do talk with our annuity specialists than a company or agent offering half a dozen or so.

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Annuities can be customized to the time period you need and offer multiple benefits through different riders ( additional features) that will be discussed when the contract is proposed. The key to success is to find an agent that can clearly explain the many benefits and weaknesses of the annuities available (specifically what they were designed to do or not to do). 

We  also offer numerous specialty annuity products which may pay for your Medicare expenses or possibly give you a much higher rate through purchasing a secondary annuity that recently came on market.

Secondary market annuities are annuities which were previously contracted through a court settlement or lottery winnings and people will take a significantly smaller amount for the cash payout immediately by selling it to someone who will provide them the single lump sum instead of the promised payments over time. Email us to learn more about our options and what may offer the best options towards your goals.

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Fixed annuities are just one class of annuity products. These are the simplest form typically offering a set amount in an agreed to period of time between you and the annuity carrier or issuer. They have the ability to be customized in a wide variety of time lengths but also offer certain guarantees. These guarantees will vary slightly between certain carriers along with the rates of return available to you, The three major or most common annuity products are fixed, indexed and variable.  Investors looking for a tax-deferred investment with a fixed rate of return will find fixed annuities safer and much more rewarding than a lower yielding rate of return such as a bank's Certificate Of Deposit.