Annuity

An immediate annuity begins payouts within 12 months of the purchase date. A deferred annuity typically begins payouts after several years, if not decades, later. There are generally two types of deferred annuity: Single Premium (one-time purchase, no additional purchase), and Flexible Premium (accept additional future payments)","reminder":"\Reminder: -Immediate annuities are typically for people over 65 years of age, who look for income/payments right away \n -Deferred annuities are for people who want to grow the retirement asset safely, have future lifetime income ('personal pension'), and/or get tax benefits

{"subtitle":"In exchange for purchasing an annuity, an investor is usually guaranteed to receive something in return. It can either be a fixed rate of return or a fixed payment. Annuity Investing provides flexibility by giving an investor a choice to:","answer":["Invest a lump sum principal or over a period of time","Start receiving payments immediately or at a later date","Select a fixed, variable or an indexed rate of return"]}

While both an annuity and a permanent life insurance policy offer the potential for an increase in the investment, an annuity does not always pay a death benefit to a beneficiary. Annuities that do have a death benefit do not pay it tax-free. Generally, annuities are designed to provide retirement income while life insurance is designed to offset a family's exposure to loss income.

FIAs can be appropriate for investors who desire protection against downside market risk in retirement, but also want to retain the potential to earn a higher interest rate than available in cash or CD’s. Additionally, retirees favoring the idea of having an income stream paid out monthly or annually for their lifetime may consider FIAs as their 'personal pension'. Moreover, investors who seek to reduce the total risk of their retirement portfolio, or reduce their annual capital gain tax or state tax, may consider utilizing an FIA.

Most fixed index annuities have a safety guarantee on your principal, with the only exception of taking money out too early. But bonds may lose value so your principal is not totally safe. Historically bonds may lose value quickly in a rising interest rate environment, yet meanwhile index annuities companies tend to offer better contracts with higher Cap or Participation Rate. Opening an account for bonds typically requires less minimal deposit than opening an annuity account. Annuities often provide lifetime income, but bonds pay interest for only a limited period of time. The conclusion however depends on your retirement goals, risk tolerance, and other needs. Caution: In a declining interest rate environment, some annuity companies tend to reduce the Cap or Participation Rate, so your growth potential may decrease.","reminder":"\Reminder: Be prudent to compare bonds with index annuities. Often times stocks and bonds are like a teeter totter. In a good stock year, the stock end of the teeter totter is up and the bond end is down. In a bad stock year, the bond end may be up. Historically seven out of ten years are good stock years. To invest in bonds is to take a lower return 7 out of 10 years. In an annuity, you are not playing that guessing game, and you are also shielded from losses, so it is likely a more productive strategy.

Mutual funds are securities that invest in stocks, bonds, U.S. Treasuries, or commodities. Annuities are contracts between an individual and an insurance company for a certain payout or yield over a given period of time. Fixed annuities have advantages of tax-efficiency, principal protection and guaranteed lifetime income, while mutual funds have more flexibility in investment options and liquidity.

Fixed annuities provide a guaranteed rate of return and payout amount, regardless of the purchase amount, stock market fluctuations, or life expectancy. Bonds offer income, but can lose value or be called by the issuer. Fixed annuities typically offer a higher rate of return than CDs, US bonds, or money market accounts. Investment risk in fixed annuities is also comparably low. Unlike fixed annuities, 401(k), ETFs and mutual funds bear a lot of stock market risks. Most other tax-efficient vehicles e.g. 401(k), IRA/Roth IRA, SEP IRA, have an annual limit on contribution amount, but annuities don't.","reminder":"\Reminder: While we classify CDs, bonds and money market accounts as low risk, that is not entirely true. For any of those three to be a good investment, interest rates have to be very high. While there have been periods of time with higher interest rates, more often than not, the risk-averse consumer is getting little or no return 'playing it safe.' It is far more productive to use an annuity which has no downside. The guaranteed rate of the Benefit Base side of an annuity will likely outperform the CD, bond or money market funds.

Annuities are a great choice if you wish to prolong your retirement savings even further, or turn into a guaranteed life-long income. Most other retirement accounts could be depleted during later years. Individuals in their 50s and 60s looking to save additional tax-deferred money for retirement can also benefit from annuities. If you look for moderate growth, guarantee features, or principal protection, annuities can be a great fit. You may also leverage the 'Joint-Life' feature with your spouse's retirement savings, and ensure an income stream covering your lifetime.

股指年金是一种固定年金. 无论是即期年金还是延期年金, 它都会获得与外部股票或股指相关的利息或收益. 指数的价值可能与股票或其他股指挂钩。 标准普尔500综合股票价格指数 (标准普尔500指数) 是最常用的指数之一。

A fixed indexed annuity (FIA) is often called equity-index annuity, either immediate or deferred, that earns interest or provides benefits that are linked to an external equity reference or an equity index. The value of the index might be tied to a stock or other equity index. One of the most commonly used indices is Standard Poor's 500 Composite Stock Price Index (the SP 500). Historically, FIAs earned a higher investment return versus that from a fixed-rate annuity (e.g. MYGA).","example":"\Example: Initial Premium: $50,000 Interest credit calculated based on the SP 500 index with a simple formula: 6% or $3000 (50K x 6% = 3000) So, Account Value grows to $53,000 Income/Benefit Base grows with a fixed rate, or by the interest credit with a Multiplier: Interest: $3000 Multiplier: 150% Benefit Base growth: $4500 (3000 x 150%) New Benefit Base: $54,500