An annuity is a contract you purchase through an
insurance company. Understanding the different types of annuities and the benefits available is key with annuity planning. There are two types of annuities, namely, immediate and deferred. Immediate annuities provide a specific income or unit amount over a period of time, which may be a stated number of years or life expectancy. The foremost reason of purchasing an immediate annuity is to provide an income stream. Conversely, deferred annuities are purchased mainly for retirement purposes. A deferred annuity is a tax deferred investment vehicle that may be purchased for a fixed or variable investment return. Fixed annuities are a deferred annuity offering a minimum guaranteed return during the annuitant’s lifetime. The returns are guaranteed and backed by the insurance company offering the annuity. Insurance companies offer a death benefit guarantee. As a death benefit, the annuitant must die in order for the beneficiary to receive this advantage. Insurance companies always offer a principal investment guarantee as a standard death benefit. The insurance company guarantees the initial investment, less any money taken from the annuity during the life of the contract.  Further enhanced death benefits are usually offered and may be purchased for an additional charge.  Second, living benefits may also be offered. In this case, the insurance company offers the contract owner a minimum living guarantee of the investment value. Like death benefits, the living benefit is offered for an additional cost.

Many people who own annuities do not understand what they have purchased. An annuity has an owner, annuitant, and beneficiary.  Titling of these contract provisions is extremely important in annuity planning. Our annuity analysis will give you an in-depth overview of your annuity contract offering clarity of the provisions, benefits, and costs.

* Annuities are long term planning vehicles.  Withdrawals prior to age 59 1/2 are subject to 10% tax penalty and withdrawals during the first several years are subject to surrender charges.  Any guarantees associated with annuities are based on the claims paying ability of the issuing insurance company.  Guarantees do not apply to the sub-accounts of variable annuities.

* Investors should carefully consider their investment objectives and risks, along with a product's charges and expenses, before investing.  Contact our office for a prospectus that includes information on charges, expenses, and other important facts.  Please read it carefully before investing.

* Investors receive no additional tax advantages by placing a variable annuity inside of a tax-qualified plan.