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The goal of annuity help centers is to give you basic educational material on annuities. Annuity help centers will give you enough information for you to ask your financial professional the right questions to achieve your ultimate goal: FINANCIAL INDEPENDENCE IN YOUR RETIREMENT AND THE ABILITY TO TRANSFER YOUR ASSETS TO YOUR BENEFICIARIES WITH THE LEAST AMOUNT OF TAX BURDEN!
Basics of an Annuity
- An annuity is simply a contract between you and an insurance. company.
- You give the insurance company money and the insurance company guarantees that they will pay you a certain amount of money for a certain period of time.
- The amount of money the insurance company will pay you will be determined either at the time you buy the annuity or a date in the future. This will depend on the type of annuity you purchase.
- The benefits of owning annuities as part of your financial planning for retirement is that any income, interest, or capital gains that the annuity earns or accumulates is tax deferred. This means you do not pay any taxes until you withdraw this money in the future. The ultimate goal is that you will not need to withdraw this money until you retire; when you should be in a lower tax bracket.
- Another benefit of an annuity is that you are required to name a beneficiary. At the time of your death your beneficiary will directly receive any benefits of the annuity. It will not go into your estate therefore bypassing probate. This benefit will save your heirs time and money.
- Another potential benefit of an annuity is it can be judgment proof in case of a legal dispute with creditors. This will depend on your state of residency and the length of time you own the annuity.
- There are three basic types of annuities: Fixed rate, Variable, and Equity index. Each of these annuities has a unique investment objective. In my opinion only after you do a professional financial plan that will plan your retirement objectives can you decide which type of annuity will meet theses objectives.
If you have any questions or concerns about your annuity or financial advisor, contact the following agencies:
Annuity helpcenters has given you just the tip of the iceberg on what you need to know before you purchase an annuity.
As an arbitrator and mediator for FINRA and a consumer advocate on investor education for the past fifteen years I believe annuities are complex investment products that should be explained, in detail, by a financial professional. Depending on your assets and your investment objective, annuities should be seriously considered in your financial planning for retirement.
At this time I strongly suggest setting up an appointment with a financial professional to find out what you need to do to become financially secure in your retirement.
Complete the form on the right and receive a free copy of the best selling financial and retirement planning book "What All Stock and Mutual Fund Investors Should Know!"
Copyright, 2009, All rights reserved.
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