Learn About Annuities – Start Here!

There are three main types of annuities:

1. Fixed annuity – In a fixed annuity, the insurance company promises the person a minimum rate of interest, and payments over a fixed period of time.  Fixed annuities are not always the most lucrative, but do offer stability that the other two types of annuities do not offer.
2. Variable annuity – In a variable annuity, the insurance company allows the person ablity to direct annuity payments to different investment options.
3. Indexed annuity – An indexed annuity combines features of both securities and insurance products, crediting the annuity-holder wiht a return that is based on one of the stock market indexes.

High Interest Annuities advertises only the first option: the fixed annuity.

In an annuity, the annuitant (you) sends money to an insurance company in exchange for an income stream at a later time. In some cases, such as an immediate annuity, the annuitant contributes a single sum of money, and the insurance company returns this money to the annuitant over a specific payout schedule along with accrued interest. In other cases, such as a deferred annuity, the annuitant contributes to the annuity during the ‘accumulation phase’, and then chooses at a later time – typically years later – to begin receiving regular payments from the annuity.

Annuities are tax-deferred in that the interest, dividends, and gains grow tax-free. When you annuitize – that is, begin receiving payments from the annuity – you will pay taxes on the earnings.

Because annuities can be complex investment vehicles, it is strongly recommended that you speak with a tax professional to determine the tax liability of an annuity. We are not tax or legal professionals.

Annuities can be excellent financial products for retirement, but they are not for everybody.  Each person’s individual financial situation should be reviewed to determine whether an annuity is the right product. Contact us today for a free, no obligation review to see if an annuity is a good fit for your retirement portfolio.

Right here! View our current annuity rates in the menu above, and if you are interested, contact us today!