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*Annuities are time accounts that work very similar to a CD at the bank.
*Annuities offer a greater return on your money. Annuity
interest rates have
averaged more than a CD over the last 20
years.
*Most Annuities are very safe investment vehicles.
*There are NO charges or fees to set up an
Annuity.
*Your money grows on a Tax-Deferred basis, which means more return on your
money than a Taxable investment like a CD or Savings account.
*Annuities offer Settlement Options, which include
the following:
a. withdrawals of your Principle;
b. withdrawals of your Interest Growth;
c. the ability to "Annuitize" or provide
income for your
lifetime;
d. the option to just let your money grow and give
it to your beneficiaries at death.
All proceeds will go to your family
with NO cost or delay of probate.
*With an Annuity, your
interest is compounded. Compound Interest is
often referred
to as the "Eighth Wonder of the World."
a. The Rule of 72 can be used to explain
Compound Interest. This rule states - if
you
divide 72 by any interest rate it will show you how long it will take you to
double
your money.
b. Example:
1. 72 divided by 1 = 72 (it would take 72 years to double your money
in a typical
bank account at 1%).
2. 72 divided by 5 = 14.4 (it would take 14.4 years to double your money in a
typical Annuity at 5%).
There is one restriction with an Annuity: Like a CD
at the bank, you can incur
early
withdrawal penalties if you take more than 10% out during the first few years.
There are different types of
Annuities available:
1. Fixed Annuities, such as:
a. Single Premium Deferred
Annuity (SPDA):
An Annuity that is purchased with one lump sum premium
payment.
b. Flexible
Premium Deferred Annuity (FPDA):
This Annuity
allows additional deposits to be made at your
discretion.
c. Immediate
Annuity:
You put a lump sum
into the Annuity and receive guaranteed monthly income for
a period of time, such as, 10, 15 , 20
years, or Life.
2. Variable Annuities:
You get all the advantages related to an Annuity
but your money is invested in
stock or bond funds, so you
lose some of the safety of a Fixed Annuity.
At any time you can begin your multiple, no hassle Quotes
by filling in the box to the far right. We service all 50
states, ages 18-85!
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