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Annuities

We incorporate strategies that give you the option for guaranteed lifetime income through the use of fixed and fixed indexed annuities.

Fixed Index Annuities (FIAs) are offered by many insurance carriers and have become very popular over the last twenty years. This type of annuity allows you the ability to grow and protect your principle from market downturns without taking market risk. The annuities allow for potential interest to be credited based in part on the performance of specific indices, such as the S&P 500, Dow Jones, JP Morgan Mozaic, Merrill Lynch RPM, and Shiller Barclays Cape.

As the selected index were to increase, your contract is credited any interest the index has earned, less the company’s stated service fee or spread. In many cases, these fees range from zero to 1.5%. These strategies have the ability to provide growth without direct market risk. The net average returns over the past twenty years range between 5–7% annually, without taking any risk.

Not all Insurance companies offer the same features, but some things to consider are:

  • Your annuity premium has no direct downside market risk. Each year as interest is earned, it is added to your balance. That new balance is fixed, and it becomes your new principal as long as your annuity contract terms and conditions are adheared to.
  • “Zero” is your “hero.” If the linked-index you choose has a down year, you will not lose money due to market volatility.
  • By choosing an optional Guaranteed Lifetime Income Rider, for an additional fee at time of purchase, you can design your annuity at a certain time to begin paying a fixed amount each year in income to you. Some companies have even built in a rider feature that offers growing lifetime payments. The longer you allow your premium to grow, the larger your income potential can be.
  • You can also structure your annuity to allow for income payments to continue to your spouse, upon your death. Your spouse or other designated beneficiary can choose the death benefit balance if one is available.

  • By choosing this optional Guaranteed Lifetime Income Rider, some insurance companies will add a guaranteed interest percentage to your balance annually — even in the event in a flat market.
  • By purchasing an annity that offers an additional home health care rider option at time of purchase, these insurance companies will allow the balance in your account to become liquid without inccurring a penalty, per those insurance companies terms and conditions. Proper medical documentation would be required.
  • If your goal is to leave money for your beneficiary, some insurance companies provide an additional rider option where they will add a guaranteed interest rate each year to your Death Benefit balance on top of any interest credited.
  • In the event of an emergency, or if you just need a few dollars, many insurance companies will allow up to 10% free withdrawal out of your annuity, however you should check with your carrier or insurance professional before purchasing an annuity.

Because of these features, and many more, studies are showing that more people are choosing Fixed Index Annuities for a portion of their retirement dollars than any other savings vehicle.1

For more information, please request a free Financial Portfolio Review and don’t forget to ask for your complimentary book written by best-selling author Patrick Kelly, “Stress-Free Retirement.”

1https://insurancenewsnet.com/innarticle/2016-fixed-annuity-sales-break-record

Annuity guarantees are backed-solely by the financial strength and claims paying ability of the issuing insurance company. Fixed Indexed Annuities and Fixed Annuities are generally considered long-term retirement vehicles. They are intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed indexed annuity is an insurance product and not a registered security or stock market investment and does not participate directly in any stock or equity investment or index. Annuities are not deposits of or guaranteed by any bank and are not insured by the FDIC. With the purchase of any additional-cost riders, the contract’s values will be reduced by the cost of the rider. This may result in a loss of principal and interest in any year in which the contract does not earn interest or earns interest in an amount less than the rider charge. This does not take into consideration surrender charges which may apply to early withdrawal charges. Please read your contract for restrictions, limitations or penalties. Withdrawals will impact the Contract Value of an annuity, may be subject to a Surrender Charge and may also impact any death benefit. Withdrawal of earnings are subject to ordinary income tax, and a 10% IRS penalty may apply to withdrawals made prior to age 59 ½.