Annuities

There are 3 types of Annuities. They are Fixed Indexed, Variable and Immediate.

Fixed Indexed – An Insurance product offering a fixed rate of return. There are no fees charged.  You make money as the market index increases, but you never lose money when the market index goes down.  This is the most popular annuity.

Variable – An annuity regulated by market returns.  There are fees charged up to 4% and you may lose your principal and interest if the market takes a downturn.

Immediate – This Annuity is designed to generate an immediate income if the client is not focusing on growth, but instead an income they cannot outlive.

The Fixed Index Annuity is the most popular annuity for those interested in receiving a bonus on their deposits, a bonus on their interest income, higher accumulation amounts, and the highest income that will last a lifetime and be transferred to their family like a life insurance policy when they die.

Example:  If a 50-year-old person has $1,000,000, and they wanted to deposit it into a Fixed Index Annuity, and after 10 years decide, they want to leave the principal and Interest invested in the annuity, they would have accumulated $2,904,326 at the end of year 10.  In year 11 they would start receiving $145,216 in annual income.  That income will grow each year due to the interest rate bonus credited each year.  In year 20, the annual income would have increased to $276,611, and in year 30 would have increased to $562,016, for a total 30-rear payout of $6,242,301.  If they lived past 80, their income would continue to grow for the rest of their life.