Annuities

Fixed Annuities — Fixed annuities are an investment contract between you and the insurance company, much like a CD is a contract between you and a bank.

Fixed annuities are a smart investment because they guarantee your principal and interest, and/or they guarantee a stated income for a particular period of time (annuitization).

Every dollar you invest in a fixed annuity is matched dollar for dollar by the annuity company and then placed in a custodial bank account to protect your investment.

“Millions of seniors are pouring record sums into annuity accounts.” – The Wall Street Journal

Features of Fixed Annuities

No other investment provides all of these important features:

  • Safety
  • No commissions charged against your principal
  • Liquidity
  • No Social Security taxation
  • Guaranteed lifetime income
  • Creditor protection
  • No current federal tax
  • No probate

Index Annuities — Index annuities are fixed annuities designed to “mirror” the performance of a common index, such as the S&P 500 Index.  When the index experiences gains, the index annuity increases by a set percentage as well.

Index Annuities: Bridging the Gap

Since 1996, $22 billion in index annuities have been sold, making them the fastest growing product ever in our industry!

Benefits include:

  • Preservation of principal — safety is 100% guaranteed
  • 100% of your money is working for you
  • Minimum interest guarantee
  • Gains credited are locked in each year
  • No market risk
  • No sales charge, no management fees, no expense charges

Consider This!

For the five-year period of 1997 through 2001, the average taxable bond mutual fund had an annualized return of 5.6%.  Actual annual index annuity returns for this period ranged from 7.8% to 8.7% — two to three percent higher than taxable bond funds!

The reason index annuities yield a greater return is because gains are guaranteed when the market is up.  When the market has a poor year, index annuity investors don’t find themselves taking losses.  Instead, they experience a “zero-percent gain.”