Annuities

Why are Annuities important?

• Guarantees
  • SPIA’s – provide income with many guaranteed payout options, including life options that can’t be outlived.
  • Growth – Fixed annuities provide peace of mind for stable, long-term growth. Multi-Year Guarantee Annuities provide guaranteed annual percentage rates, while Equity Indexed Annuities determine the annual percentage yield within your annuity by referencing indexes such as the S&P 500.
  • Safety against market downturn – All fixed annuities guarantee that your initial principal and previous years’ growth will never be lost.
• Protection against law suits – There are a few states, such as Florida and Texas, that have laws in place where annuities can provide protection from creditors and frivolous lawsuits. The poster-child example of this protection is O.J. Simpson, who was reported to have lived on money he had in annuities after the civil judgment against him in 1994.
• Tax-Deferred Growth – Just like 401K’s and Traditional IRA’s, growth within annuities is tax-deferred. This means that growth is not visible to the IRS, and is not taxable until it is removed from the annuity contract. This tax-deferred strategy yields higher returns as compared to taxable investments offering the same percentage rate.