Annuities
An Annuity takes one of two Forms
It can be a Vehicle for accumulating Wealth that grows on a tax deferred basis until death or Converted to a flow of Income
It can be a Vehicle for distributing Wealth over a period of time.
FIXED - INDEXED - VARIABLE Annuities
Fixed - Basics - some variations are out there depending on the specific product form each carrier.
Basically works like a CD down at the bank.
The money sits there for a set period of time and earns a guaranteed rate of interest.
There is a penalty if you withdraw the funds before that set period of time elapses.
And the interst rate will be a bit better than you get from a CD.
You have the ability to draw 10% of the funds each year without a penalty (CD's don't offer that)
The holding period must be at least five years.
Indexed - Basics - some variations are out there depending on the specific product form each carrier.
Basically works like a Fixed Annuity with a twist.
The money sits there for a set period of time and earns a guaranteed rate of interest with a twist.
There is a penalty if you withdraw the funds before that set period of time elapses.
The Twist - Earnings are tied to the S&P 500 or some other Stock Index. If the market goes up you go up and if the market goes down, your DON'T go down.
That is right the twist is that your get to participate in the market and enjoy upward potential with NO DOWNSIDE RISK.
A great way to allow your money to participate it the gains of the stock market without subjecting it to the risk of downturns in the market. Great for IRA monies or extra money designated for use beyond 10 years.
You have the ability to draw 10% of the funds each year without a penalty (CD's don't offer that) and Required Minimum Distributions (RMDs) are allowed not subject to withdrawal penalties.
The holding period must be at least ten years.
I think this is where your IRA Funds should be that want to be conservative.
Variable - Basics - some variations are out there depending on the specific product form each carrier.
Basically works like a Mutual Fund with tax deferred status like all annuities.
The money sits there for a set period of time and has earnings AND losses that are tied to the stock market.
There is a penalty if you withdraw the funds before that set period of time elapses.
If the market goes up you go up and if the market goes down you go down with it.
This is a higher risk product and I believe has no place for one who is no longer working to replace any losses.
You have the ability to draw 10% of the funds each year without a penalty (CD's don't offer that) and Required Minimum Distributions (RMDs) are allowed not subject to withdrawal penalties.
The holding period must be at least ten years.
Not for those with a low risk tollerance.
These products have there place in the protfolio and should not be overlooked.
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Greg Giles, CLU LUTCF RHU ......................................................................................................................................... 2613 SW Brooklane Dr - Corvallis, OR 97333 ............................................................ (541) 752-0577 .......... (800) 809-1378 .......... (541) 752-0588 FAX ......................... medsupguy@gmail.com............gilesfinancial@msn.com
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Craig Blair ............................................................................................................................................................................. 7958 Mykala St. NE, Keizer, OR 97303
Office (503)393-2793 ........... (844)393-2793 ......................................................... medicareguy@outlook.com
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Derek Finken ........................................................................................................................................................................... PO BOX 366 - MIssouri Valley, IA 51555 .......................................................................... (712) 642-2303 .......... (844) 786-4865 .......... (844) 786-4867 FAX .............................. tmedsupguy@gmail.com..........dmedsupguy@gmail.com