
Annuities
are characterized by their safety, tax-deferral
features, guaranteed interest rates, and
for providing income when it is needed most,
in one's retirement years.
Annuities
offer the investor many choices. Here are some of the popular
kinds of annuities that are available:
*
Fixed Deferred Annuities specify a fixed, guaranteed
minimum rate of interest that will be paid on the principal
amount invested in the annuity. The company assumes the
investment risk. If investment performance is less than
what is required to fund the minimum rate of interest, the
annuity company must make up the difference at no cost to
you.
*
Single Premium Deferred Annuities are for those
who make their investment all at one time and don't plan
to add to it. Those who have a large sum of money available
some time before retirement might buy this type of annuity.
The money might come from an inheritance or a lump-sum distribution
from a pension plan.
*
Flexible Premium Deferred Annuities are for those
who make a series of regular investments over time, rather
than putting everything in at once. It is called "flexible"
because you can decide how often you want to invest and
how much you invest each time.
*
Immediate Annuities are similar to a single-premium
annuity, but payments begin right away. You are most likely
to be interested in an immediate annuity if you want to
convert accumulated assets into income payments that start
at once.
Once
the annuity payments begin, you generally give up any control
of the principle in your account. You cannot withdraw cash
from it beyond the annuity payment to which you are entitled.
Upon an annuitant's death, payments ordinarily cease unless
an arrangement has been made with the annuity company to
continue payments to an additional beneficiary as your heir.
Continuation of payments to an heir is an option you may
wish to consider when setting up your annuity.
What
type of annuity is best for you?
We
can assist you in determining the appropriate annuity, whether
it is a deferred, immediate, or one of the many other annuity
programs we offer.
Call
us or stop by next time you're in the area and we'd be happy
to give you a No Obligation Quote or fill
out our on-line quote request form.
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