Monday, November 24, 2008
Tax Deferred Fixed Annuities www.legacyannuities.com
IN SPITE OF WHAT WE SEE ON THE NEWS EVERY DAY THERE ARE REASONS TO BE OPTIMISTIC ABOUT THE FUTURE. PEOPLE ARE LIVING LONGER AND HEALTHY LIVES. AND ENJOYING THEMSELVES LONG AFTER THEY RETIRE. BUT TO REALIZE THE PROMISE OF THE FUTURE ONE MUST ALSO CONSIDER ITS CHALLENGES. WHAT ARE THE CHALLENGES THAT WE MUST BE PREPARED TO FACE IN THE FUTURE?
THERE IS THE CHALLENGE OF INFLATION.
THE CHALLENGE OF A VOLATILE INVESTMENTS AND SAVINGS ACCOUNTS. AS WE HAVE SEEN IN RECENT YEARS… INTEREST RATES CAN GO UP AND DOWN AND THE STOCK MARKET CAN GO UP AND DOWN.
THERE IS THE CHALLENGE OF TAXATION. I AM TALKING ABOUT NOT JUST INCOME TAXES, BUT CAPITAL GAINS TAX, TAX ON SOCIAL SECURITY INCOME AND ESTATE TAXES AS WELL.
THESE ARE ALL CHALLENGES THAT YOU HAVE PROBABLY THOUGHT ABOUT FROM TIME TO TIME. BUT THERE IS ONE ADDITIONAL CHALLENGE THAT I FIND THAT MANY PEOPLE DON’T REALLY PAY MUCH ATTENTION TO AND THAT IS THE CHALLENGE OF THE POTENTIAL THAT IF WE LIVE LONG ENOUGH WE MIGHT OUTLIVING OUR INCOME.
OVER THE NEXT FEW MINUTES I AM GOING TO TALK NOT ONLY ABOUT THESE CHALLENGES… I AM GOING TO TALK ABOUT A POSSIBLE SOLUTION AS WELL.
FIRST, LET’S TALK A LITTLE MORE ABOUT INFLATION. THIS SLIDE SHOWS THE PRICES FOR MANY OF THE THINGS WE ALL BY AS THEY WERE IN 1963 AND THEN WHAT THEY HAD INCREASED TO BY THE YEAR 2000. THE CONCERN THAT WE ALL MUST SHARE IS… WILL OUR INCOME KEEP PACE WITH ANY POTENTIAL INCREASES IN FUTURE COSTS OF LIVING?
IN SPITE OF WHAT WE SEE ON THE NEWS EVERY DAY THERE ARE REASONS TO BE OPTIMISTIC ABOUT THE FUTURE. PEOPLE ARE LIVING LONGER AND HEALTHY LIVES. AND ENJOYING THEMSELVES LONG AFTER THEY RETIRE. BUT TO REALIZE THE PROMISE OF THE FUTURE ONE MUST ALSO CONSIDER ITS CHALLENGES. WHAT ARE THE CHALLENGES THAT WE MUST BE PREPARED TO FACE IN THE FUTURE?
THERE IS THE CHALLENGE OF INFLATION.
THE CHALLENGE OF A VOLATILE INVESTMENTS AND SAVINGS ACCOUNTS. AS WE HAVE SEEN IN RECENT YEARS… INTEREST RATES CAN GO UP AND DOWN AND THE STOCK MARKET CAN GO UP AND DOWN.
THERE IS THE CHALLENGE OF TAXATION. I AM TALKING ABOUT NOT JUST INCOME TAXES, BUT CAPITAL GAINS TAX, TAX ON SOCIAL SECURITY INCOME AND ESTATE TAXES AS WELL.
THESE ARE ALL CHALLENGES THAT YOU HAVE PROBABLY THOUGHT ABOUT FROM TIME TO TIME. BUT THERE IS ONE ADDITIONAL CHALLENGE THAT I FIND THAT MANY PEOPLE DON’T REALLY PAY MUCH ATTENTION TO AND THAT IS THE CHALLENGE OF THE POTENTIAL THAT IF WE LIVE LONG ENOUGH WE MIGHT OUTLIVING OUR INCOME.
OVER THE NEXT FEW MINUTES I AM GOING TO TALK NOT ONLY ABOUT THESE CHALLENGES… I AM GOING TO TALK ABOUT A POSSIBLE SOLUTION AS WELL.
FIRST, LET’S TALK A LITTLE MORE ABOUT INFLATION. THIS SLIDE SHOWS THE PRICES FOR MANY OF THE THINGS WE ALL BY AS THEY WERE IN 1963 AND THEN WHAT THEY HAD INCREASED TO BY THE YEAR 2000. THE CONCERN THAT WE ALL MUST SHARE IS… WILL OUR INCOME KEEP PACE WITH ANY POTENTIAL INCREASES IN FUTURE COSTS OF LIVING?
Tax Deferred Fixed Annuities http://www.legacyannuities.com/
IF IT DOESN’T, THEN WE WILL BE FORCED TO DEAL WITH SOME VERY MAJOR PROBLEMS. FOR EXAMPLE, AT 4% INFLATION, THE PURCHASING POWER OF $100,000 ERODES TO JUST $30,000 OVER A PERIOD OF 35 YEARS. THAT WOULD MEAN THAT OUR SAVINGS WOULD ONLY BUY ABOUT ONE THIRD OF IT WOULD TODAY!
CALACULATING THE IMPACT OF FUTURE INFLATION IS PRETTY EASY IF WE FOLLOW A FORMULA REFERRED TO AS THE RULE OF 72. TO FIND HOW LONG IT WILL TAKE PRICES OF GOODS AND SERVICES TO DOUBLE ALL WE DO IS DIVIDE THE NUMBER 72 BY THE CURRENT INFLATION RATE. FOR EXAMPLE, IF THE INFLATION RATE IS 4% THEN 72 / 4% EQUALS 18. THAT MEANS THAT IN 18 YEARS PRICES WILL DOUBLE… OR ANOTHER WAY OF LOKKING AT IT IS THAT IN 18 YEARS OUR SAVINGS IS WORTH HALF (IN TERMS OF PURCHASING POWER) OF WHAT IT IS WORTH TODAY.
IF THE INFLATION RATE AVERAGED 2% THEN IT WOULD TAKE 36 YEARS FOR PRICES TO DOUBLE. AT A 10% INFLATION RATE PRICES DOUBLE IN ONLY A LITTLE MORE THAN 7 YEARS.
NO ONE KNOWS WHAT FUTURE RATES OF INFLATION WILL BE, BUT AT ALMOST ANY LEVEL INFLATION MEANS A POTENTIAL PROBLEM.
PEOPLE CONCERNED WITH INFLATION OFTEN TURN TO THE EQUITY MARKETS. THEY VIEW THE HISTORICAL STEADY CLIMB OF EQUITIES AS A WAY TO HELP COMBAT THE EFFECTS OF INFLATION. HOWEVER… WHILE PAST PERFORMANCE OF THE STOCK MARKET IN GENERAL MIGHT BE IMPRESSIVE, THERE ARE NO GUARANTEES REGARDING FUTURE PERFORMANCE.
EVEN POWERFUL LONG-TERM UPWARD TRENDS ARE USUALLY MADE UP OF A SERIES OF SHORTER-TERM UPS AND DOWNS.
THE VOLATILITY OF EQUITIES HAS CAUSED EVEN THE MOST EXPERIENCED INVESTORS TO SUFFER THROUGH MANY SLEEPLESS NIGHTS.
THE DOWN PERIODS CAN PRESENT SPECIAL PROBLEMS FOR RETIREES WHO HAVE AN IMMEDIATE NEED TO ACCESS SAVINGS TO PAY FOR UNEXPECTED MEDICAL EXPENSES OR FOR OTHER UNFORESEEN EMERGENCIES.
MANY RETIREES WHO ARE ADVERSE TO THE RISK OF MARKET VOLATILITY PLACE A LARGE PORTION OF THEIR SAVINGS IN BANK CDs. THIS CAN ALLOW THEM TO AVOID THE UPS AND DOWNS OF EQUITIES AND ALLOW THEM TO SLEEP MORE PEACEFULLY
IF IT DOESN’T, THEN WE WILL BE FORCED TO DEAL WITH SOME VERY MAJOR PROBLEMS. FOR EXAMPLE, AT 4% INFLATION, THE PURCHASING POWER OF $100,000 ERODES TO JUST $30,000 OVER A PERIOD OF 35 YEARS. THAT WOULD MEAN THAT OUR SAVINGS WOULD ONLY BUY ABOUT ONE THIRD OF IT WOULD TODAY!
CALACULATING THE IMPACT OF FUTURE INFLATION IS PRETTY EASY IF WE FOLLOW A FORMULA REFERRED TO AS THE RULE OF 72. TO FIND HOW LONG IT WILL TAKE PRICES OF GOODS AND SERVICES TO DOUBLE ALL WE DO IS DIVIDE THE NUMBER 72 BY THE CURRENT INFLATION RATE. FOR EXAMPLE, IF THE INFLATION RATE IS 4% THEN 72 / 4% EQUALS 18. THAT MEANS THAT IN 18 YEARS PRICES WILL DOUBLE… OR ANOTHER WAY OF LOKKING AT IT IS THAT IN 18 YEARS OUR SAVINGS IS WORTH HALF (IN TERMS OF PURCHASING POWER) OF WHAT IT IS WORTH TODAY.
IF THE INFLATION RATE AVERAGED 2% THEN IT WOULD TAKE 36 YEARS FOR PRICES TO DOUBLE. AT A 10% INFLATION RATE PRICES DOUBLE IN ONLY A LITTLE MORE THAN 7 YEARS.
NO ONE KNOWS WHAT FUTURE RATES OF INFLATION WILL BE, BUT AT ALMOST ANY LEVEL INFLATION MEANS A POTENTIAL PROBLEM.
PEOPLE CONCERNED WITH INFLATION OFTEN TURN TO THE EQUITY MARKETS. THEY VIEW THE HISTORICAL STEADY CLIMB OF EQUITIES AS A WAY TO HELP COMBAT THE EFFECTS OF INFLATION. HOWEVER… WHILE PAST PERFORMANCE OF THE STOCK MARKET IN GENERAL MIGHT BE IMPRESSIVE, THERE ARE NO GUARANTEES REGARDING FUTURE PERFORMANCE.
EVEN POWERFUL LONG-TERM UPWARD TRENDS ARE USUALLY MADE UP OF A SERIES OF SHORTER-TERM UPS AND DOWNS.
THE VOLATILITY OF EQUITIES HAS CAUSED EVEN THE MOST EXPERIENCED INVESTORS TO SUFFER THROUGH MANY SLEEPLESS NIGHTS.
THE DOWN PERIODS CAN PRESENT SPECIAL PROBLEMS FOR RETIREES WHO HAVE AN IMMEDIATE NEED TO ACCESS SAVINGS TO PAY FOR UNEXPECTED MEDICAL EXPENSES OR FOR OTHER UNFORESEEN EMERGENCIES.
MANY RETIREES WHO ARE ADVERSE TO THE RISK OF MARKET VOLATILITY PLACE A LARGE PORTION OF THEIR SAVINGS IN BANK CDs. THIS CAN ALLOW THEM TO AVOID THE UPS AND DOWNS OF EQUITIES AND ALLOW THEM TO SLEEP MORE PEACEFULLY
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Tax Deferred Fixed Annuities www.legacyannuities.com
WHILE CDs PROTECT YOUR SAVINGS FROM MARKET RISK, THE INTEREST RATES YOU EARN CAN FLUCTUATE DRAMATICALLY OVER TIME. VOLATILITY OF INTEREST RATES CAN CAUSE AS MANY SLEEPLESS NIGHTS AS THE UPS AND DOWNS OF EQUITIES… ESPECIALLY FOR THOSE LIVING ON A FIXED RETIREMENT INCOME.
DURING PERIODS WHEN INTEREST RATES ARE LOW… AFTER TAXES AND INFLATION YOU MAY FACE A LOSS OF PURCHASING POWER WITH CDs.
CONSIDER THE IMPACT OF INFLATION AND TAXES ON INTEREST EARNINGS. EARNINGS FROM CDs ARE CURRENTLY TAXABLE IN THE YEAR EARNED, WHETHER THEY ARE WITHDRAWN OR LEFT TO ACCUMULATE.
AFTER DEDUCTING YOUR INCOME TAXES….
YOU CAN SEE THAT NET EARNINGS ARE ACTUALLY MUCH LOWER.
THEN, BY FACTORING IN A HYPOTHETICAL RATE OF INFLATION….
THESE NET EARNINGS FURTHER ERODE INTO A NEGATIVE REAL RATE OF RETURN.
PERHAPS INFLATION WILL BE HELD IN CHECK OVER THE NEXT 20 OR 30 YEARS. AND, PERHAPS INCOME TAXES WILL NOT TOUCH US AS SEVERELY. BUT… IF INFLATION AND INCOME TAXES ARE A PROBLEM IN THE FUTURE, AS THEY HAVE BEEN IN THE PAST, IT WILL LIKELY HAVE A MOST DRAMATIC EFFECT ON THOSE RETIRED AND LIVING ON A FIXED INCOME.
WHILE CDs PROTECT YOUR SAVINGS FROM MARKET RISK, THE INTEREST RATES YOU EARN CAN FLUCTUATE DRAMATICALLY OVER TIME. VOLATILITY OF INTEREST RATES CAN CAUSE AS MANY SLEEPLESS NIGHTS AS THE UPS AND DOWNS OF EQUITIES… ESPECIALLY FOR THOSE LIVING ON A FIXED RETIREMENT INCOME.
DURING PERIODS WHEN INTEREST RATES ARE LOW… AFTER TAXES AND INFLATION YOU MAY FACE A LOSS OF PURCHASING POWER WITH CDs.
CONSIDER THE IMPACT OF INFLATION AND TAXES ON INTEREST EARNINGS. EARNINGS FROM CDs ARE CURRENTLY TAXABLE IN THE YEAR EARNED, WHETHER THEY ARE WITHDRAWN OR LEFT TO ACCUMULATE.
AFTER DEDUCTING YOUR INCOME TAXES….
YOU CAN SEE THAT NET EARNINGS ARE ACTUALLY MUCH LOWER.
THEN, BY FACTORING IN A HYPOTHETICAL RATE OF INFLATION….
THESE NET EARNINGS FURTHER ERODE INTO A NEGATIVE REAL RATE OF RETURN.
PERHAPS INFLATION WILL BE HELD IN CHECK OVER THE NEXT 20 OR 30 YEARS. AND, PERHAPS INCOME TAXES WILL NOT TOUCH US AS SEVERELY. BUT… IF INFLATION AND INCOME TAXES ARE A PROBLEM IN THE FUTURE, AS THEY HAVE BEEN IN THE PAST, IT WILL LIKELY HAVE A MOST DRAMATIC EFFECT ON THOSE RETIRED AND LIVING ON A FIXED INCOME.
Labels: www.legacyannuities.com
WHILE CDs PROTECT YOUR SAVINGS FROM MARKET RISK, THE INTEREST RATES YOU EARN CAN FLUCTUATE DRAMATICALLY OVER TIME. VOLATILITY OF INTEREST RATES CAN CAUSE AS MANY SLEEPLESS NIGHTS AS THE UPS AND DOWNS OF EQUITIES… ESPECIALLY FOR THOSE LIVING ON A FIXED RETIREMENT INCOME.
DURING PERIODS WHEN INTEREST RATES ARE LOW… AFTER TAXES AND INFLATION YOU MAY FACE A LOSS OF PURCHASING POWER WITH CDs.
CONSIDER THE IMPACT OF INFLATION AND TAXES ON INTEREST EARNINGS. EARNINGS FROM CDs ARE CURRENTLY TAXABLE IN THE YEAR EARNED, WHETHER THEY ARE WITHDRAWN OR LEFT TO ACCUMULATE.
AFTER DEDUCTING YOUR INCOME TAXES….
YOU CAN SEE THAT NET EARNINGS ARE ACTUALLY MUCH LOWER.
THEN, BY FACTORING IN A HYPOTHETICAL RATE OF INFLATION….
THESE NET EARNINGS FURTHER ERODE INTO A NEGATIVE REAL RATE OF RETURN.
PERHAPS INFLATION WILL BE HELD IN CHECK OVER THE NEXT 20 OR 30 YEARS. AND, PERHAPS INCOME TAXES WILL NOT TOUCH US AS SEVERELY. BUT… IF INFLATION AND INCOME TAXES ARE A PROBLEM IN THE FUTURE, AS THEY HAVE BEEN IN THE PAST, IT WILL LIKELY HAVE A MOST DRAMATIC EFFECT ON THOSE RETIRED AND LIVING ON A FIXED INCOME.
DURING PERIODS WHEN INTEREST RATES ARE LOW… AFTER TAXES AND INFLATION YOU MAY FACE A LOSS OF PURCHASING POWER WITH CDs.
CONSIDER THE IMPACT OF INFLATION AND TAXES ON INTEREST EARNINGS. EARNINGS FROM CDs ARE CURRENTLY TAXABLE IN THE YEAR EARNED, WHETHER THEY ARE WITHDRAWN OR LEFT TO ACCUMULATE.
AFTER DEDUCTING YOUR INCOME TAXES….
YOU CAN SEE THAT NET EARNINGS ARE ACTUALLY MUCH LOWER.
THEN, BY FACTORING IN A HYPOTHETICAL RATE OF INFLATION….
THESE NET EARNINGS FURTHER ERODE INTO A NEGATIVE REAL RATE OF RETURN.
PERHAPS INFLATION WILL BE HELD IN CHECK OVER THE NEXT 20 OR 30 YEARS. AND, PERHAPS INCOME TAXES WILL NOT TOUCH US AS SEVERELY. BUT… IF INFLATION AND INCOME TAXES ARE A PROBLEM IN THE FUTURE, AS THEY HAVE BEEN IN THE PAST, IT WILL LIKELY HAVE A MOST DRAMATIC EFFECT ON THOSE RETIRED AND LIVING ON A FIXED INCOME.
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Tax Deferred Fixed Annuities www.legacyannuities.com
TO MAKE MATTERS WORSE, SOCIAL SECURITY IS NOW CONSIDERED TAXABLE INCOME FOR MANY RETIREES. BACK IN 1935 FRANKLIN ROOSEVELT PROMISED THAT THERE WOULD NEVER BE A TAX ON SOCIAL SECURITY BENEFITS.
BUT TODAY IT HAS BECOME A TAX BURDEN THAT MANY RETIREES ARE ASKED TO BEAR.
IN 1984 LEGISLATION WAS ENACTED THAT SHOCKINGLY FORCED MANY SOCIAL SECURITY RECIPIENTS TO COUNT 50% OF THEIR SOCIAL SECURITY INCOME AS TAXABLE INCOME.
IN 1993 PEOPLE WERE SHOCKED AGAIN AS RETIREES WITH GREATER INCOME WERE FORCED TO COUNT UP TO 85% OF THEIR SOCIAL SECURITY AS TAXABLE INCOME.
WILL WE BE SHOCKED AGAIN IF FUTURE LEGISLATION TAXES EVEN MORE OF OUR SOCIAL SECURITY BENEFITS?
TODAY TAXES CAN TAKE A THIRD OR MORE OF YOUR SAVING’S INTEREST, DIVIDENDS AND CAPITAL GAINS EACH YEAR.
INFLATION CAN SILENTLY DESTROY THE PURCHASING POWER OF A LARGE PORTION OF WHAT REMAINS…
YOU ARE LEFT WITH THE REMAINDER TO HELP MEET THE CHALLENGES OF THE FUTURE.
OF THE FUTURE CHALLENGES WHICH SHOULD BE OF MOST CONCERN? PERHAPS IT IS THE POSSIBILITY THAT WE MIGHT LIVE SO LONG AS TO ONE DAY OUTLIVE OUR ASSETS!
CONSIDER THAT IN 1900, THE APPROXIMATE LIFE EXPECTANCY WAS 45 YEARS. IN 1990 IT HAD INCREASED TO 75. BECAUSE OF THE ADVANCES OF SCIENCE AND MEDICINE MANY OF US CAN NOW EXPECT TO SPEND 20, 30 OR MORE YEARS IN RETIREMENT. IN FACT, ONE OF THE FASTEST GROWING GROUPS IN AMERICA ARE THE SO-CALLED “CENTURIONS” — PEOPLE LIVING BEYOND AGE 100. WITH THIS INCREASED LONGEVITY COMES THE RISK OF DEPLETING OUR ASSETS DURING OUR LIFETIME AND POSSIBLY OUTLIVING OUR INCOME!
TO MAKE MATTERS WORSE, SOCIAL SECURITY IS NOW CONSIDERED TAXABLE INCOME FOR MANY RETIREES. BACK IN 1935 FRANKLIN ROOSEVELT PROMISED THAT THERE WOULD NEVER BE A TAX ON SOCIAL SECURITY BENEFITS.
BUT TODAY IT HAS BECOME A TAX BURDEN THAT MANY RETIREES ARE ASKED TO BEAR.
IN 1984 LEGISLATION WAS ENACTED THAT SHOCKINGLY FORCED MANY SOCIAL SECURITY RECIPIENTS TO COUNT 50% OF THEIR SOCIAL SECURITY INCOME AS TAXABLE INCOME.
IN 1993 PEOPLE WERE SHOCKED AGAIN AS RETIREES WITH GREATER INCOME WERE FORCED TO COUNT UP TO 85% OF THEIR SOCIAL SECURITY AS TAXABLE INCOME.
WILL WE BE SHOCKED AGAIN IF FUTURE LEGISLATION TAXES EVEN MORE OF OUR SOCIAL SECURITY BENEFITS?
TODAY TAXES CAN TAKE A THIRD OR MORE OF YOUR SAVING’S INTEREST, DIVIDENDS AND CAPITAL GAINS EACH YEAR.
INFLATION CAN SILENTLY DESTROY THE PURCHASING POWER OF A LARGE PORTION OF WHAT REMAINS…
YOU ARE LEFT WITH THE REMAINDER TO HELP MEET THE CHALLENGES OF THE FUTURE.
OF THE FUTURE CHALLENGES WHICH SHOULD BE OF MOST CONCERN? PERHAPS IT IS THE POSSIBILITY THAT WE MIGHT LIVE SO LONG AS TO ONE DAY OUTLIVE OUR ASSETS!
CONSIDER THAT IN 1900, THE APPROXIMATE LIFE EXPECTANCY WAS 45 YEARS. IN 1990 IT HAD INCREASED TO 75. BECAUSE OF THE ADVANCES OF SCIENCE AND MEDICINE MANY OF US CAN NOW EXPECT TO SPEND 20, 30 OR MORE YEARS IN RETIREMENT. IN FACT, ONE OF THE FASTEST GROWING GROUPS IN AMERICA ARE THE SO-CALLED “CENTURIONS” — PEOPLE LIVING BEYOND AGE 100. WITH THIS INCREASED LONGEVITY COMES THE RISK OF DEPLETING OUR ASSETS DURING OUR LIFETIME AND POSSIBLY OUTLIVING OUR INCOME!
Labels: www.legacyannuities.com
Tax Deferred Fixed Annuities www.legacyannuities.com
WHEN CONSIDERING THE EFFECTS OF INFLATION, VOLATILE INTEREST RATES AND FINANCIAL MARKETS, TAXATION … AND THE POSSIBILITY OF OUTLIVING OUR INCOME, ONE MUST WONDER IF THERE IS A PRODUCT THAT CAN HELP MEET THESE CHALLENGES?
FORTUNATELY THE ANSWER IS YES IT IS THE TAX-DEFERRED FIXED ANNUITY.
FIXED ANNUITIES PROVIDE A MINIMUM GUARANTEED INTEREST RATE. GENERALLY TRADITIONAL FIXED ANNUITIES GUARANTEE A HIGHER INTEREST RATE FOR ONE YEAR AND THEN THAT RATE CAN FLUCTUATE THROUGHOUT THE LIFE OF THE CONTRACT….
BUT IT CAN NEVER FALL BELOW THE MINIMUM GUARANTEED RATE.
THIS MINIMUM GUARANTEED INTEREST RATE CAN PROVIDE AN ATTRACTIVE ALTERNATIVE WHEN INTEREST RATES AND THE EQUITY MARKETS ARE PARTICULARLY VOLATILE.
ONE FORM OF A FIXED ANNUITY IS THE EQUITY INDEXED ANNUITY WHICH PROVIDES THE OPPORTUNITY FOR GAINS LINKED TO AN INDEX SUCH AS THE S&P 500, BUT WITH NO MARKET RISK TO PRINCIPAL. IF THE STRUCTURE OF THE EQUITY INDEXED ANNUITY DOES GENERATE EARNINGS IN ADDITION TO THE MINIMUM GUARANTEES, THOSE EARNINGS COULD HELP OFFSET THE EFFECTS OF FUTURE INFLATION.
THE WITHDRAWAL OPTIONS OF ANNUITIES ARE ALSO UNIQUELY SUITED TO HELP DEAL WITH THE POSSIBLY OUTLIVING OUR ASSETS.
AT MATURITY YOU MAY DECIDE TO WITHDRAW THE MONEY THAT YOU’VE ACCUMULATED IN YOUR ANNUITY ALL AT ONCE.
, YOU COULD SELECT FROM A VARIETY OF RETIREMENT INCOME OPTIONS.
WHEN CONSIDERING THE EFFECTS OF INFLATION, VOLATILE INTEREST RATES AND FINANCIAL MARKETS, TAXATION … AND THE POSSIBILITY OF OUTLIVING OUR INCOME, ONE MUST WONDER IF THERE IS A PRODUCT THAT CAN HELP MEET THESE CHALLENGES?
FORTUNATELY THE ANSWER IS YES IT IS THE TAX-DEFERRED FIXED ANNUITY.
FIXED ANNUITIES PROVIDE A MINIMUM GUARANTEED INTEREST RATE. GENERALLY TRADITIONAL FIXED ANNUITIES GUARANTEE A HIGHER INTEREST RATE FOR ONE YEAR AND THEN THAT RATE CAN FLUCTUATE THROUGHOUT THE LIFE OF THE CONTRACT….
BUT IT CAN NEVER FALL BELOW THE MINIMUM GUARANTEED RATE.
THIS MINIMUM GUARANTEED INTEREST RATE CAN PROVIDE AN ATTRACTIVE ALTERNATIVE WHEN INTEREST RATES AND THE EQUITY MARKETS ARE PARTICULARLY VOLATILE.
ONE FORM OF A FIXED ANNUITY IS THE EQUITY INDEXED ANNUITY WHICH PROVIDES THE OPPORTUNITY FOR GAINS LINKED TO AN INDEX SUCH AS THE S&P 500, BUT WITH NO MARKET RISK TO PRINCIPAL. IF THE STRUCTURE OF THE EQUITY INDEXED ANNUITY DOES GENERATE EARNINGS IN ADDITION TO THE MINIMUM GUARANTEES, THOSE EARNINGS COULD HELP OFFSET THE EFFECTS OF FUTURE INFLATION.
THE WITHDRAWAL OPTIONS OF ANNUITIES ARE ALSO UNIQUELY SUITED TO HELP DEAL WITH THE POSSIBLY OUTLIVING OUR ASSETS.
AT MATURITY YOU MAY DECIDE TO WITHDRAW THE MONEY THAT YOU’VE ACCUMULATED IN YOUR ANNUITY ALL AT ONCE.
, YOU COULD SELECT FROM A VARIETY OF RETIREMENT INCOME OPTIONS.
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Tax Deferred Fixed Annuities www.legacyannuities.com
BUT IT CAN NEVER FALL BELOW THE MINIMUM GUARANTEED RATE.
THIS MINIMUM GUARANTEED INTEREST RATE CAN PROVIDE AN ATTRACTIVE ALTERNATIVE WHEN INTEREST RATES AND THE EQUITY MARKETS ARE PARTICULARLY VOLATILE.
ONE FORM OF A FIXED ANNUITY IS THE EQUITY INDEXED ANNUITY WHICH PROVIDES THE OPPORTUNITY FOR GAINS LINKED TO AN INDEX SUCH AS THE S&P 500, BUT WITH NO MARKET RISK TO PRINCIPAL. IF THE STRUCTURE OF THE EQUITY INDEXED ANNUITY DOES GENERATE EARNINGS IN ADDITION TO THE MINIMUM GUARANTEES, THOSE EARNINGS COULD HELP OFFSET THE EFFECTS OF FUTURE INFLATION.
THE WITHDRAWAL OPTIONS OF ANNUITIES ARE ALSO UNIQUELY SUITED TO HELP DEAL WITH THE POSSIBLY OUTLIVING OUR ASSETS.
AT MATURITY YOU MAY DECIDE TO WITHDRAW THE MONEY THAT YOU’VE ACCUMULATED IN YOUR ANNUITY ALL AT ONCE.
OR, YOU COULD SELECT FROM A VARIETY OF RETIREMENT INCOME OPTIONS.
BUT IT CAN NEVER FALL BELOW THE MINIMUM GUARANTEED RATE.
THIS MINIMUM GUARANTEED INTEREST RATE CAN PROVIDE AN ATTRACTIVE ALTERNATIVE WHEN INTEREST RATES AND THE EQUITY MARKETS ARE PARTICULARLY VOLATILE.
ONE FORM OF A FIXED ANNUITY IS THE EQUITY INDEXED ANNUITY WHICH PROVIDES THE OPPORTUNITY FOR GAINS LINKED TO AN INDEX SUCH AS THE S&P 500, BUT WITH NO MARKET RISK TO PRINCIPAL. IF THE STRUCTURE OF THE EQUITY INDEXED ANNUITY DOES GENERATE EARNINGS IN ADDITION TO THE MINIMUM GUARANTEES, THOSE EARNINGS COULD HELP OFFSET THE EFFECTS OF FUTURE INFLATION.
THE WITHDRAWAL OPTIONS OF ANNUITIES ARE ALSO UNIQUELY SUITED TO HELP DEAL WITH THE POSSIBLY OUTLIVING OUR ASSETS.
AT MATURITY YOU MAY DECIDE TO WITHDRAW THE MONEY THAT YOU’VE ACCUMULATED IN YOUR ANNUITY ALL AT ONCE.
OR, YOU COULD SELECT FROM A VARIETY OF RETIREMENT INCOME OPTIONS.
Labels: www.legacyannuities.com
Tax Deferred Fixed Annuities www.legacyannuities.com
ONE OPTION WILL GUARANTEE A MONTHLY INCOME FOR AS LONG AS YOU LIVE. A GUARANTEED LIFETIME INCOME CAN GO A LONG WAY TO PROVIDING THE PEACE OF MIND NEEDED TO ENJOY MANY FUTURE RETIREMENT YEARS.
AND, ANNUITIES PROVIDE AN OPPORTUNITY FOR TAX-DEFERRED GROWTH.
THE INCOME TAX ON YOUR ANNUITY’S INTEREST EARNINGS IS DEFERRED UNTIL YOU CHOOSE TO ACCESS YOUR SAVINGS.
THIS MEANS THAT AS LONG AS THE MONEY STAYS WITHIN THE ANNUITY YOU HAVE THE TRIPLE ADVANTAGE OF…
EARNING INTEREST ON YOUR PREMIUMM
EARNING INTEREST ON YOUR INTEREST,
AND INTEREST ON THE MONEY THAT YOU WOULD OTHERWISE HAVE PAID IN CURRENT TAXES.
FIXED ANNUITIES CAN HELP YOU DEAL WITH VOLATILITY BY PROVIDING ADDITIONAL OPPORTUNITIES FOR DIVERSIFYING YOUR INVESTMENTS. IF YOUR INVESTMENT PORTFOLIO RELIES TOO HEAVILY ON HIGHER OR MODERATE RISK INVESTMENTS, THE SAFETY AND GUARANTEES OF FIXED ANNUITIES CAN PROVIDE AN EXCELLENT ALTERNATIVE.
PEOPLE DETERMINED TO PLACE ALL OF THEIR SAVINGS ONLY IN VEHICLES THAT PROVIDE SAFETY OF PRINCIPAL CAN LOOK UPON FIXED ANNUITIES AS AN OPTION FOR EVEN GREATER DIVERSIFICATION AMONG SAFETY ORIENTED INVESTMENTS.
ONE OPTION WILL GUARANTEE A MONTHLY INCOME FOR AS LONG AS YOU LIVE. A GUARANTEED LIFETIME INCOME CAN GO A LONG WAY TO PROVIDING THE PEACE OF MIND NEEDED TO ENJOY MANY FUTURE RETIREMENT YEARS.
AND, ANNUITIES PROVIDE AN OPPORTUNITY FOR TAX-DEFERRED GROWTH.
THE INCOME TAX ON YOUR ANNUITY’S INTEREST EARNINGS IS DEFERRED UNTIL YOU CHOOSE TO ACCESS YOUR SAVINGS.
THIS MEANS THAT AS LONG AS THE MONEY STAYS WITHIN THE ANNUITY YOU HAVE THE TRIPLE ADVANTAGE OF…
EARNING INTEREST ON YOUR PREMIUMM
EARNING INTEREST ON YOUR INTEREST,
AND INTEREST ON THE MONEY THAT YOU WOULD OTHERWISE HAVE PAID IN CURRENT TAXES.
FIXED ANNUITIES CAN HELP YOU DEAL WITH VOLATILITY BY PROVIDING ADDITIONAL OPPORTUNITIES FOR DIVERSIFYING YOUR INVESTMENTS. IF YOUR INVESTMENT PORTFOLIO RELIES TOO HEAVILY ON HIGHER OR MODERATE RISK INVESTMENTS, THE SAFETY AND GUARANTEES OF FIXED ANNUITIES CAN PROVIDE AN EXCELLENT ALTERNATIVE.
PEOPLE DETERMINED TO PLACE ALL OF THEIR SAVINGS ONLY IN VEHICLES THAT PROVIDE SAFETY OF PRINCIPAL CAN LOOK UPON FIXED ANNUITIES AS AN OPTION FOR EVEN GREATER DIVERSIFICATION AMONG SAFETY ORIENTED INVESTMENTS.
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Tax Deferred Fixed Annuities www.legacyannuities.com
COMBINING THE SAFETY OF FIXED ANNUITIES WITH THE ADVANTAGE OF TAX-DEFERRED GROWTH PROVIDES MANY CONSERVATIVE INVESTORS WITH A WAY TO INCREASE THE NET AFTER-TAX GROWTH OF THEIR EARNINGS WITHOUT EXPOSING THEIR PRINCIPAL TO MARKET RISK. TO ILLUSTRATE THIS ADVANTAGE CONSIDER TWO $50,000 SUMS COMPOUNDING AT THE HYPOTHETICAL RATE OF 6%. (PLEASE NOTE THAT WE ARE SELECTING 6% TO ILLUSTRATE THE EFFECT OF TAXATION ON GROWTH ONLY. ACTUAL INTEREST EARNINGS OF FIXED ANNUITIES OR OTHER INVESTMENTS COULD BE LOWER OR HIGHER THEN THIS RATE.)
WITH TAXES BEING PAID EACH YEAR THE CURRENTLY TAXED SUM WOULD GROW TO $76,322 AFTER 10 YEARS. BUT IF THE TAXES ARE DEFERRED THE EFFECT OF COMPOUNDING IS MORE PRONOUNCED SO THE TOTAL AT THE END OF 10 YEARS IS $89,542. EVEN IF ALL OF THE TAXES WERE PAID AT THIS TIME, $78,470 WOULD REMAIN. THE NET EFFECT IS THAT AFTER TAXES OVER $2,000 MORE IS LEFT WHEN INCOME TAXES WERE DEFERRED FOR 10 YEARS.
INSTEAD OF 10 YEARS LETS ASSUME THAT THE ENTIRE $89,542 SUM CONTINUES TO GROW TAX-DEFERRED FOR 20 YEARS. NOW THE TOTAL WOULD BE $160,355. IF ALL OF THE TAXES WERE PAID AT THE END OF THIS PERIOD, $129,456 WOULD REMAIN. THAT’S ALMOST $13,000 MORE THEN IF THE INCOME TAXES WERE PAID EACH YEAR.
WHAT IF THE TAXES WERE DEFERRED FOR A TOTAL OF 30 YEARS? THE ORIGINAL SUM OF $50,000 WOULD HAVE GROWN TO $287,175. EVEN AFTER PAYING ALL OF THE INCOME TAX ON THIS GAIN, THERE WOULD STILL BE A TOTAL OF $220,765 DOLLARS REMAINING. CONTRAST THIS TO THE $177,830 THAT IS LEFT WHEN TAXES ARE PAID EACH YEAR. OVER THIRTY YEARS, TAX DEFERRAL GENERATES ALMOST $43,000 MORE AFTER ALL OF THE INCOME TAXES ARE PAID!
REMEMBER, WITH AN ANNUITY YOU PAY THE INCOME TAX ON YOUR INTEREST EARNINGS ONLY WHEN YOU CHOOSE TO ACCESS YOUR SAVINGS. SO YOU HAVE THE ADVANTAGE OF CONTROLLING WHEN THE TAXES WILL BE PAID.
COMBINING THE SAFETY OF FIXED ANNUITIES WITH THE ADVANTAGE OF TAX-DEFERRED GROWTH PROVIDES MANY CONSERVATIVE INVESTORS WITH A WAY TO INCREASE THE NET AFTER-TAX GROWTH OF THEIR EARNINGS WITHOUT EXPOSING THEIR PRINCIPAL TO MARKET RISK. TO ILLUSTRATE THIS ADVANTAGE CONSIDER TWO $50,000 SUMS COMPOUNDING AT THE HYPOTHETICAL RATE OF 6%. (PLEASE NOTE THAT WE ARE SELECTING 6% TO ILLUSTRATE THE EFFECT OF TAXATION ON GROWTH ONLY. ACTUAL INTEREST EARNINGS OF FIXED ANNUITIES OR OTHER INVESTMENTS COULD BE LOWER OR HIGHER THEN THIS RATE.)
WITH TAXES BEING PAID EACH YEAR THE CURRENTLY TAXED SUM WOULD GROW TO $76,322 AFTER 10 YEARS. BUT IF THE TAXES ARE DEFERRED THE EFFECT OF COMPOUNDING IS MORE PRONOUNCED SO THE TOTAL AT THE END OF 10 YEARS IS $89,542. EVEN IF ALL OF THE TAXES WERE PAID AT THIS TIME, $78,470 WOULD REMAIN. THE NET EFFECT IS THAT AFTER TAXES OVER $2,000 MORE IS LEFT WHEN INCOME TAXES WERE DEFERRED FOR 10 YEARS.
INSTEAD OF 10 YEARS LETS ASSUME THAT THE ENTIRE $89,542 SUM CONTINUES TO GROW TAX-DEFERRED FOR 20 YEARS. NOW THE TOTAL WOULD BE $160,355. IF ALL OF THE TAXES WERE PAID AT THE END OF THIS PERIOD, $129,456 WOULD REMAIN. THAT’S ALMOST $13,000 MORE THEN IF THE INCOME TAXES WERE PAID EACH YEAR.
WHAT IF THE TAXES WERE DEFERRED FOR A TOTAL OF 30 YEARS? THE ORIGINAL SUM OF $50,000 WOULD HAVE GROWN TO $287,175. EVEN AFTER PAYING ALL OF THE INCOME TAX ON THIS GAIN, THERE WOULD STILL BE A TOTAL OF $220,765 DOLLARS REMAINING. CONTRAST THIS TO THE $177,830 THAT IS LEFT WHEN TAXES ARE PAID EACH YEAR. OVER THIRTY YEARS, TAX DEFERRAL GENERATES ALMOST $43,000 MORE AFTER ALL OF THE INCOME TAXES ARE PAID!
REMEMBER, WITH AN ANNUITY YOU PAY THE INCOME TAX ON YOUR INTEREST EARNINGS ONLY WHEN YOU CHOOSE TO ACCESS YOUR SAVINGS. SO YOU HAVE THE ADVANTAGE OF CONTROLLING WHEN THE TAXES WILL BE PAID.
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Tax Deferred Fixed Annuities www.legacyannuities.com
BUT THERE IS ANOTHER POTENTIAL ADVANTAGE WITH ANNUITIES AS WELL. INSTEAD OF WITHDRAWING THE MONEY THAT YOU HAVE ACCUMULATED IN YOUR ANNUITY ALL AT ONCE, YOU COULD SELECT FROM A VARIETY OF RETIREMENT INCOME OPTIONS. ONE SUCH OPTION WOULD GUARANTEE A MONTHLY INCOME FOR AS LONG AS YOU LIVE. UNDER THIS OPTION YOUR MONTHLY INCOME WOULD BE CALCULATED BASED ON THE ENTIRE AMOUNT ACCUMULATED IN YOUR ANNUITY BEFORE ANY INCOME TAX IS PAID. UNDER CURRENT TAX LAW A PORTION OF EACH PAYMENT WOULD BE CONSIDERED TAXABLE INCOME WHILE THE REMAINING PORTION WOULD GENERALLY BE CONSIDERED A NONTAXABLE RETURN OF COST.
THE FAVORABLE TAX TREATMENT OF ANNUITIES CAN ALLOW FUNDS TO ACCUMULATE OVER THE YEARS WITHOUT BEING ERODED ANNUALLY BY CURRENT TAXES. THEN THESE FUNDS COULD BE USED TO PROVIDE A RETIREMENT INCOME GUARANTEED TO LAST FOR THE REST OF THE OWNERS LIFE… WITH A PORTION OF THAT INCOME BEING NONTAXABLE.
BUT THERE IS ANOTHER POTENTIAL ADVANTAGE WITH ANNUITIES AS WELL. INSTEAD OF WITHDRAWING THE MONEY THAT YOU HAVE ACCUMULATED IN YOUR ANNUITY ALL AT ONCE, YOU COULD SELECT FROM A VARIETY OF RETIREMENT INCOME OPTIONS. ONE SUCH OPTION WOULD GUARANTEE A MONTHLY INCOME FOR AS LONG AS YOU LIVE. UNDER THIS OPTION YOUR MONTHLY INCOME WOULD BE CALCULATED BASED ON THE ENTIRE AMOUNT ACCUMULATED IN YOUR ANNUITY BEFORE ANY INCOME TAX IS PAID. UNDER CURRENT TAX LAW A PORTION OF EACH PAYMENT WOULD BE CONSIDERED TAXABLE INCOME WHILE THE REMAINING PORTION WOULD GENERALLY BE CONSIDERED A NONTAXABLE RETURN OF COST.
THE FAVORABLE TAX TREATMENT OF ANNUITIES CAN ALLOW FUNDS TO ACCUMULATE OVER THE YEARS WITHOUT BEING ERODED ANNUALLY BY CURRENT TAXES. THEN THESE FUNDS COULD BE USED TO PROVIDE A RETIREMENT INCOME GUARANTEED TO LAST FOR THE REST OF THE OWNERS LIFE… WITH A PORTION OF THAT INCOME BEING NONTAXABLE.
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AND CONSIDER THAT LEFT IN THE ANNUITY, EARNINGS WILL NOT AFFECT TAXATION OF SOCIAL SECURITY INCOME. FOR SOME THIS CAN MEAN THAT EACH YEAR’S INCOME TAX BILL WILL BE LOWER BECAUSE THE TAXES ON THE ANNUITY’S EARNINGS ARE DEFERRED AS THEY ACCUMULATE… AND THE TAX BILL COULD BE LOWER STILL BECAUSE AS THE ANNUITY’S EARNINGS ACCUMULATE THEY ARE NOT CONSIDERED WHEN DETERMINING IF THE TAXPAYER’S INCOME IS HIGH ENOUGH TO TRIGGER THE INCLUSION OF A PORTION OF SOCIAL SECURITY AS ADDITIONAL TAXABLE INCOME.
ANNUITIES CAN ALSO PROVIDE ADVANTAGES WHEN IT COMES TO SETTLING THE OWNERS ESTATE. WHEN LEFT TO YOUR NAMED BENEFICIARY ANNUITIES AUTOMATICALLY AVOID…
THE EXPENSE
THE DELAYS AND…
INFLEXIBILITY OF PROBATE. BYPASSING PROBATE CAN BE WELCOME RELIEF FOR FAMILY MEMBERS WHO OTHERWISE MIGHT HAVE TO STRUGGLE WITH COURTS AND ATTORNEYS BEFORE THEY RECEIVE THEIR INHERITANCE.
FIXED ANNUITIES OFFER MANY ADVANTAGES.
• THEY ARE FREE FROM MARKET RISK.
ANNUITIES CAN ALSO PROVIDE ADVANTAGES WHEN IT COMES TO SETTLING THE OWNERS ESTATE. WHEN LEFT TO YOUR NAMED BENEFICIARY ANNUITIES AUTOMATICALLY AVOID…
THE EXPENSE
THE DELAYS AND…
INFLEXIBILITY OF PROBATE. BYPASSING PROBATE CAN BE WELCOME RELIEF FOR FAMILY MEMBERS WHO OTHERWISE MIGHT HAVE TO STRUGGLE WITH COURTS AND ATTORNEYS BEFORE THEY RECEIVE THEIR INHERITANCE.
FIXED ANNUITIES OFFER MANY ADVANTAGES.
• THEY ARE FREE FROM MARKET RISK.
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• WITH FIXED ANNUITIES YOUR PRINCIPAL IS GUARANTEED.
• THERE IS A MINIMUM INTEREST GUARANTEE.
• INCOME TAXES ON EARNINGS ARE DEFERRED AS LONG AS THEY REMAIN IN THE ANNUITY.
• ANNUITIES OFFER A GUARANTEED LIFETIME INCOME OPTION.
• AMOUNTS DISTRIBUTED AT DEATH BYPASS PROBATE WHEN LEFT TO YOUR NAMED BENEFICIARY.
• AND, AS EARNINGS ACCUMULATE WITHIN YOUR ANNUITY THERE IS NO AFFECT ON THE TAXATION OF SOCIAL SECURITY INCOME.
• THERE IS A MINIMUM INTEREST GUARANTEE.
• INCOME TAXES ON EARNINGS ARE DEFERRED AS LONG AS THEY REMAIN IN THE ANNUITY.
• ANNUITIES OFFER A GUARANTEED LIFETIME INCOME OPTION.
• AMOUNTS DISTRIBUTED AT DEATH BYPASS PROBATE WHEN LEFT TO YOUR NAMED BENEFICIARY.
• AND, AS EARNINGS ACCUMULATE WITHIN YOUR ANNUITY THERE IS NO AFFECT ON THE TAXATION OF SOCIAL SECURITY INCOME.
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Wednesday, November 19, 2008
www.legacyannuities.com
Fixed Annuities
CALACULATING THE IMPACT OF FUTURE INFLATION IS PRETTY EASY IF WE FOLLOW A FORMULA REFERRED TO AS THE RULE OF 72. TO FIND HOW LONG IT WILL TAKE PRICES OF GOODS AND SERVICES TO DOUBLE ALL WE DO IS DIVIDE THE NUMBER 72 BY THE CURRENT INFLATION RATE. FOR EXAMPLE, IF THE INFLATION RATE IS 4% THEN 72 / 4% EQUALS 18. THAT MEANS THAT IN 18 YEARS PRICES WILL DOUBLE… OR ANOTHER WAY OF LOKKING AT IT IS THAT IN 18 YEARS OUR SAVINGS IS WORTH HALF (IN TERMS OF PURCHASING POWER) OF WHAT IT IS WORTH TODAY.
IF THE INFLATION RATE AVERAGED 2% THEN IT WOULD TAKE 36 YEARS FOR PRICES TO DOUBLE. AT A 10% INFLATION RATE PRICES DOUBLE IN ONLY A LITTLE MORE THAN 7 YEARS.
NO ONE KNOWS WHAT FUTURE RATES OF INFLATION WILL BE, BUT AT ALMOST ANY LEVEL INFLATION MEANS A POTENTIAL PROBLEM.
PEOPLE CONCERNED WITH INFLATION OFTEN TURN TO THE EQUITY MARKETS. THEY VIEW THE HISTORICAL STEADY CLIMB OF EQUITIES AS A WAY TO HELP COMBAT THE EFFECTS OF INFLATION. HOWEVER… WHILE PAST PERFORMANCE OF THE STOCK MARKET IN GENERAL MIGHT BE IMPRESSIVE, THERE ARE NO GUARANTEES REGARDING FUTURE PERFORMANCE.
EVEN POWERFUL LONG-TERM UPWARD TRENDS ARE USUALLY MADE UP OF A SERIES OF SHORTER-TERM UPS AND DOWNS.
THE VOLATILITY OF EQUITIES HAS CAUSED EVEN THE MOST EXPERIENCED INVESTORS TO SUFFER THROUGH MANY SLEEPLESS NIGHTS.
Fixed Annuities
CALACULATING THE IMPACT OF FUTURE INFLATION IS PRETTY EASY IF WE FOLLOW A FORMULA REFERRED TO AS THE RULE OF 72. TO FIND HOW LONG IT WILL TAKE PRICES OF GOODS AND SERVICES TO DOUBLE ALL WE DO IS DIVIDE THE NUMBER 72 BY THE CURRENT INFLATION RATE. FOR EXAMPLE, IF THE INFLATION RATE IS 4% THEN 72 / 4% EQUALS 18. THAT MEANS THAT IN 18 YEARS PRICES WILL DOUBLE… OR ANOTHER WAY OF LOKKING AT IT IS THAT IN 18 YEARS OUR SAVINGS IS WORTH HALF (IN TERMS OF PURCHASING POWER) OF WHAT IT IS WORTH TODAY.
IF THE INFLATION RATE AVERAGED 2% THEN IT WOULD TAKE 36 YEARS FOR PRICES TO DOUBLE. AT A 10% INFLATION RATE PRICES DOUBLE IN ONLY A LITTLE MORE THAN 7 YEARS.
NO ONE KNOWS WHAT FUTURE RATES OF INFLATION WILL BE, BUT AT ALMOST ANY LEVEL INFLATION MEANS A POTENTIAL PROBLEM.
PEOPLE CONCERNED WITH INFLATION OFTEN TURN TO THE EQUITY MARKETS. THEY VIEW THE HISTORICAL STEADY CLIMB OF EQUITIES AS A WAY TO HELP COMBAT THE EFFECTS OF INFLATION. HOWEVER… WHILE PAST PERFORMANCE OF THE STOCK MARKET IN GENERAL MIGHT BE IMPRESSIVE, THERE ARE NO GUARANTEES REGARDING FUTURE PERFORMANCE.
EVEN POWERFUL LONG-TERM UPWARD TRENDS ARE USUALLY MADE UP OF A SERIES OF SHORTER-TERM UPS AND DOWNS.
THE VOLATILITY OF EQUITIES HAS CAUSED EVEN THE MOST EXPERIENCED INVESTORS TO SUFFER THROUGH MANY SLEEPLESS NIGHTS.
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www.legacyannuities.com
TAX DEFERRED-FIXED ANNUITIES
IN SPITE OF WHAT WE SEE ON THE NEWS EVERY DAY THERE ARE REASONS TO BE OPTIMISTIC ABOUT THE FUTURE. PEOPLE ARE LIVING LONGER AND HEALTHY LIVES. AND ENJOYING THEMSELVES LONG AFTER THEY RETIRE. BUT TO REALIZE THE PROMISE OF THE FUTURE ONE MUST ALSO CONSIDER ITS CHALLENGES. WHAT ARE THE CHALLENGES THAT WE MUST BE PREPARED TO FACE IN THE FUTURE?
THERE IS THE CHALLENGE OF INFLATION.
THE CHALLENGE OF A VOLATILE INVESTMENTS AND SAVINGS ACCOUNTS. AS WE HAVE SEEN IN RECENT YEARS… INTEREST RATES CAN GO UP AND DOWN AND THE STOCK MARKET CAN GO UP AND DOWN.
THERE IS THE CHALLENGE OF TAXATION. I AM TALKING ABOUT NOT JUST INCOME TAXES, BUT CAPITAL GAINS TAX, TAX ON SOCIAL SECURITY INCOME AND ESTATE TAXES AS WELL.
THESE ARE ALL CHALLENGES THAT YOU HAVE PROBABLY THOUGHT ABOUT FROM TIME TO TIME. BUT THERE IS ONE ADDITIONAL CHALLENGE THAT I FIND THAT MANY PEOPLE DON’T REALLY PAY MUCH ATTENTION TO AND THAT IS THE CHALLENGE OF THE POTENTIAL THAT IF WE LIVE LONG ENOUGH WE MIGHT OUTLIVING OUR INCOME.
OVER THE NEXT FEW MINUTES I AM GOING TO TALK NOT ONLY ABOUT THESE CHALLENGES… I AM GOING TO TALK ABOUT A POSSIBLE SOLUTION AS WELL.
FIRST, LET’S TALK A LITTLE MORE ABOUT INFLATION. THIS SLIDE SHOWS THE PRICES FOR MANY OF THE THINGS WE ALL BY AS THEY WERE IN 1963 AND THEN WHAT THEY HAD INCREASED TO BY THE YEAR 2000.
THE CONCERN THAT WE ALL MUST SHARE IS… WILL OUR INCOME KEEP PACE WITH ANY POTENTIAL INCREASES IN FUTURE COSTS OF LIVING?
IF IT DOESN’T, THEN WE WILL BE FORCED TO DEAL WITH SOME VERY MAJOR PROBLEMS. FOR EXAMPLE, AT 4% INFLATION, THE PURCHASING POWER OF $100,000 ERODES TO JUST $30,000 OVER A PERIOD OF 35 YEARS. THAT WOULD MEAN THAT OUR SAVINGS WOULD ONLY BUY ABOUT ONE THIRD OF IT WOULD TODAY!
Fixed Annuities
TAX DEFERRED-FIXED ANNUITIES
IN SPITE OF WHAT WE SEE ON THE NEWS EVERY DAY THERE ARE REASONS TO BE OPTIMISTIC ABOUT THE FUTURE. PEOPLE ARE LIVING LONGER AND HEALTHY LIVES. AND ENJOYING THEMSELVES LONG AFTER THEY RETIRE. BUT TO REALIZE THE PROMISE OF THE FUTURE ONE MUST ALSO CONSIDER ITS CHALLENGES. WHAT ARE THE CHALLENGES THAT WE MUST BE PREPARED TO FACE IN THE FUTURE?
THERE IS THE CHALLENGE OF INFLATION.
THE CHALLENGE OF A VOLATILE INVESTMENTS AND SAVINGS ACCOUNTS. AS WE HAVE SEEN IN RECENT YEARS… INTEREST RATES CAN GO UP AND DOWN AND THE STOCK MARKET CAN GO UP AND DOWN.
THERE IS THE CHALLENGE OF TAXATION. I AM TALKING ABOUT NOT JUST INCOME TAXES, BUT CAPITAL GAINS TAX, TAX ON SOCIAL SECURITY INCOME AND ESTATE TAXES AS WELL.
THESE ARE ALL CHALLENGES THAT YOU HAVE PROBABLY THOUGHT ABOUT FROM TIME TO TIME. BUT THERE IS ONE ADDITIONAL CHALLENGE THAT I FIND THAT MANY PEOPLE DON’T REALLY PAY MUCH ATTENTION TO AND THAT IS THE CHALLENGE OF THE POTENTIAL THAT IF WE LIVE LONG ENOUGH WE MIGHT OUTLIVING OUR INCOME.
OVER THE NEXT FEW MINUTES I AM GOING TO TALK NOT ONLY ABOUT THESE CHALLENGES… I AM GOING TO TALK ABOUT A POSSIBLE SOLUTION AS WELL.
FIRST, LET’S TALK A LITTLE MORE ABOUT INFLATION. THIS SLIDE SHOWS THE PRICES FOR MANY OF THE THINGS WE ALL BY AS THEY WERE IN 1963 AND THEN WHAT THEY HAD INCREASED TO BY THE YEAR 2000.
THE CONCERN THAT WE ALL MUST SHARE IS… WILL OUR INCOME KEEP PACE WITH ANY POTENTIAL INCREASES IN FUTURE COSTS OF LIVING?
IF IT DOESN’T, THEN WE WILL BE FORCED TO DEAL WITH SOME VERY MAJOR PROBLEMS. FOR EXAMPLE, AT 4% INFLATION, THE PURCHASING POWER OF $100,000 ERODES TO JUST $30,000 OVER A PERIOD OF 35 YEARS. THAT WOULD MEAN THAT OUR SAVINGS WOULD ONLY BUY ABOUT ONE THIRD OF IT WOULD TODAY!
Fixed Annuities
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Saturday, July 21, 2007
What is a FixedAnnuity?
On its most basic level, a fixed annuity is an insurance product that provides a client with safety, yield and liquidity.It also provides tax deferral, lifetime income, probate efficiency , no up-front sales loads and no annual fees or charges.
SAFETY + YIELD + LIQUIDITY
Tax Deferral
Lifetime Income
Probate Efficiency
No Up Front Sales Loads
No Annual Fees or Charges
On its most basic level, a fixed annuity is an insurance product that provides a client with safety, yield and liquidity.It also provides tax deferral, lifetime income, probate efficiency , no up-front sales loads and no annual fees or charges.
SAFETY + YIELD + LIQUIDITY
Tax Deferral
Lifetime Income
Probate Efficiency
No Up Front Sales Loads
No Annual Fees or Charges
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Highest CD Annuity Rates.
EquiTrust Life Insurance Company Annuity
10 Yr.
5.50%
Midland National Life Annuity
9 Yr.
5.30%
EquiTrust Life Insurance Company Annuity
8 Yr.
5.25%
Midland National Life Annuity
7 Yr.
5.20%
Beneficial Financial Annuity
6 Yr.
5.44%
Loyal American Life Annuity
5 Yr.
5.40%
Midland National Life Annuity
4 Yr.
5.05%
EquiTrust Life Insurance Company Annuity
3 Yr.
4.70%
Annuity Investors Life Annuity
2 Yr.
4.55%
Beneficial Financial Annuity
1 Yr.
4.77%
EquiTrust Life Insurance Company Annuity
10 Yr.
5.50%
Midland National Life Annuity
9 Yr.
5.30%
EquiTrust Life Insurance Company Annuity
8 Yr.
5.25%
Midland National Life Annuity
7 Yr.
5.20%
Beneficial Financial Annuity
6 Yr.
5.44%
Loyal American Life Annuity
5 Yr.
5.40%
Midland National Life Annuity
4 Yr.
5.05%
EquiTrust Life Insurance Company Annuity
3 Yr.
4.70%
Annuity Investors Life Annuity
2 Yr.
4.55%
Beneficial Financial Annuity
1 Yr.
4.77%
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Saturday, June 09, 2007
Is my investment at risk?
No Risk to Principal
Most fixed annuities guarantee that a client will never receive back less than he or she invested. When investing for retirement, this is a clear advantage over other investment alternatives.
No Risk to Principal
Most fixed annuities guarantee that a client will never receive back less than he or she invested. When investing for retirement, this is a clear advantage over other investment alternatives.
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Using Annuities for Retirement.
Many people, after funding their 401(k) plans, IRAs, or other retirement plans, may have additional money that they want to earmark for retirement. Unlike other retirement plans that have dollar limits restricting amounts that can be contributed, an individual can invest whatever amount he or she would like in an annuity for retirement.
Many people also may work part-time or for small businesses and may not be covered by any employer-sponsored retirement plan whatsoever. For these individuals, an annuity may offer an important way to save for retirement.Know your options,
Many people, after funding their 401(k) plans, IRAs, or other retirement plans, may have additional money that they want to earmark for retirement. Unlike other retirement plans that have dollar limits restricting amounts that can be contributed, an individual can invest whatever amount he or she would like in an annuity for retirement.
Many people also may work part-time or for small businesses and may not be covered by any employer-sponsored retirement plan whatsoever. For these individuals, an annuity may offer an important way to save for retirement.Know your options,
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Highest CD Type annuity Rates.
EquiTrust Life Insurance Company
Certainty Select 10
10 Yr.
5.00%
Midland National Life
MNL Guarantee Plus 9
9 Yr.
5.00%
Protective Life Corporation
FutureSaver II Annuity 8 (100k)
8 Yr.
4.88%
Midland National Life
MNL Guarantee Plus 7
7 Yr.
4.95%
Beneficial Financial
Guaranteed Advantage 6
6 Yr.
5.24%
Beneficial Financial
Guaranteed Step-Up 5
5 Yr.
5.11%
Fort Dearborn Life
Wealth Fortifier 4 (100k)
4 Yr.
4.65%
Midland National Life
Direct Guarantee 3
3 Yr.
4.43%
Protective Life Corporation
FutureSaver II Annuity 2 (100k)
2 Yr.
4.30%
Beneficial Financial
Advantage 1
1 Yr.
4.77%
EquiTrust Life Insurance Company
Certainty Select 10
10 Yr.
5.00%
Midland National Life
MNL Guarantee Plus 9
9 Yr.
5.00%
Protective Life Corporation
FutureSaver II Annuity 8 (100k)
8 Yr.
4.88%
Midland National Life
MNL Guarantee Plus 7
7 Yr.
4.95%
Beneficial Financial
Guaranteed Advantage 6
6 Yr.
5.24%
Beneficial Financial
Guaranteed Step-Up 5
5 Yr.
5.11%
Fort Dearborn Life
Wealth Fortifier 4 (100k)
4 Yr.
4.65%
Midland National Life
Direct Guarantee 3
3 Yr.
4.43%
Protective Life Corporation
FutureSaver II Annuity 2 (100k)
2 Yr.
4.30%
Beneficial Financial
Advantage 1
1 Yr.
4.77%
Labels: www.legacyannuities.com
Wednesday, May 16, 2007
www.legacyannuities.com
GLOSSARY OF INSURANCE AND ANNUITIES TERMS
Accumulation PeriodThe period during which you pay premiums on a deferred annuity.
Accumulated ValueThe actual amount of money in your annuity account when the payout period starts.
Administrative FeesAn amount deducted from the life insurance policy or annuity to pay the costs of marketing or administering the life insurance policy or annuity.
AmendmentAn attachment to a life insurance policy that modifies certain policy benefits.
Agent CommissionThe money paid to an insurance agent for selling an insurance policy or annuity. A commission is almost always calculated as a percentage of the premium.
Annuitization PeriodThe period of time in which you receive payments from the annuity.
Annuity A contract in which a buyer deposits money with a life insurance company for investment. The contract provides for payments to be made at regular intervals for a fixed time period or for life. Assignment The transfer to another person of all or part of a policy owner's legal title and rights to a policy. These may be irrevocable (can never be changed) or collateral (some rights are transferred, or for a certain period of time.)
BeneficiaryThe person or entity designated to receive the death benefits from a life insurance policy or annuity contract when the insured person dies.
Benefit RateInsurance companies usually express the rates for annuity payout plans in terms of a monthly income per $1,000 applied. The company multiplies the value of the accumulation fund by this rate to determine the monthly payments which you will receive during the payout period.
Cash Surrender ValueThe amount of cash that is due the policy owner who surrenders a life insurance policy. Surrendering the entire value, with termination of all insurance benefits, is often called "cashing out".
ChurningA fraudulent practice in which insurance agents mislead consumers into giving up the cash value, or taking loans against current life policies to buy new policies with a new company or with the same company. Since agents receive a commission when a new policy is purchased, the agent "churns" policies to make more money for himself or herself.
Death Benefit Amount paid to the beneficiary upon the death of the insured.
Deferred AnnuityAn annuity, the income benefits from which begin at some designated future date (as contrasted to an annuity the benefits from which begin at once, called an Immediate Annuity).
DividendMoney paid annually to a policyholder as a partial return on the paid premium.
Many times a policyholder can use dividends to increase the cash value or death benefits.
Evidence of InsurabilityA signed health questionnaire or a physical examination, depending on a company's requirement.
Face ValueThe initial amount of death benefit provided by the policy as shown on the front page of the contract. The actual death benefit may be higher or lower depending on the options selected, outstanding policy loans or premium owed.
Flexible Premium Annuity ContractAn annuity that permits varying premium payments from year to year, and which is often used for IRAs.
Free-Look PeriodThe time period after a life insurance policy or an annuity is delivered during which the policy owner may review it and return it to the company for a full refund of the initial premium.
Grace PeriodThe time, usually 30 days, during which a policy remains in force after the premium is due but not paid. The policy lapses as of the day the premium was originally due unless the premium is paid before the end of the 30 days or the insured dies during the grace period.
Guaranteed Insurability RiderA rider attached to a life insurance policy which permits you to buy additional insurance at one or more specified "option dates" without providing new evidence of insurability at that time.
Guaranteed Minimum Interest RateThe lowest interest rate a company will credit to a fixed annuity accumulation fund.
Immediate AnnuityAnnuity payments that begin immediately or within about a year after the time you purchase the annuity.
IncontestabilityA provision that places a two-year time limit on a company's right to deny payment of a claim because of a material misrepresentation on your application.
Initial Interest RateThe interest rate that the insurance company credits to your premium when first issuing the policy. The company may guarantee this rate for one or more years. Otherwise, the rate is not guaranteed, and may change at the discretion of the company.
LapseTermination of a policy because of failure to pay the premium.
LoadAny sales fees or charges you pay in purchasing a policy or annuity.
Material MisrepresentationA significant misstatement in an application form. If a company had access to the correct information at the time of application, the company might not have agreed to accept the application.
Paid-Up AdditionsAdditional life insurance purchased with policy dividends. No additional premium payments are needed for paid-up additions.
Payout PeriodThe period during which you receive the income from your annuity. Also known as the annuitization phase.
Policy OwnerThe person who owns an individual life insurance policy or annuity. This person may be the insured, the annuitant, the beneficiary or another person. The policy owner usually is the one who pays the premium and is the only person who may make changes to a policy.
Rated PolicyA policy issued at a higher premium to cover a person classified as a greater-than-average risk, usually due to impaired health or a dangerous occupation.
ReplacementA replacement happens when a consumer uses some or all of the value of life insurance or an annuity that the consumer currently owns to buy a new life insurance policy or annuity contract.
RiderA written amendment attached to an insurance policy expanding or limiting the benefits otherwise payable under an insurance policy.
Scheduled Premium Annuity ContractAn annuity that defines, in the contract, the size and frequency of premiums you must pay.
Surrender ChargesCharges that are deducted if your life insurance policy or annuity is cashed in (surrendered). The amount of the surrender charges vary widely among insurance companies and may change over the life of the policy.
Tax-Qualified AnnuityAn annuity that allows you to deduct your premium payments from your taxable income when filing your tax return with the IRS.
UnderwriterThe person who reviews an application for insurance and decides if the applicant is acceptable and at what premium rate.
GLOSSARY OF INSURANCE AND ANNUITIES TERMS
Accumulation PeriodThe period during which you pay premiums on a deferred annuity.
Accumulated ValueThe actual amount of money in your annuity account when the payout period starts.
Administrative FeesAn amount deducted from the life insurance policy or annuity to pay the costs of marketing or administering the life insurance policy or annuity.
AmendmentAn attachment to a life insurance policy that modifies certain policy benefits.
Agent CommissionThe money paid to an insurance agent for selling an insurance policy or annuity. A commission is almost always calculated as a percentage of the premium.
Annuitization PeriodThe period of time in which you receive payments from the annuity.
Annuity A contract in which a buyer deposits money with a life insurance company for investment. The contract provides for payments to be made at regular intervals for a fixed time period or for life. Assignment The transfer to another person of all or part of a policy owner's legal title and rights to a policy. These may be irrevocable (can never be changed) or collateral (some rights are transferred, or for a certain period of time.)
BeneficiaryThe person or entity designated to receive the death benefits from a life insurance policy or annuity contract when the insured person dies.
Benefit RateInsurance companies usually express the rates for annuity payout plans in terms of a monthly income per $1,000 applied. The company multiplies the value of the accumulation fund by this rate to determine the monthly payments which you will receive during the payout period.
Cash Surrender ValueThe amount of cash that is due the policy owner who surrenders a life insurance policy. Surrendering the entire value, with termination of all insurance benefits, is often called "cashing out".
ChurningA fraudulent practice in which insurance agents mislead consumers into giving up the cash value, or taking loans against current life policies to buy new policies with a new company or with the same company. Since agents receive a commission when a new policy is purchased, the agent "churns" policies to make more money for himself or herself.
Death Benefit Amount paid to the beneficiary upon the death of the insured.
Deferred AnnuityAn annuity, the income benefits from which begin at some designated future date (as contrasted to an annuity the benefits from which begin at once, called an Immediate Annuity).
DividendMoney paid annually to a policyholder as a partial return on the paid premium.
Many times a policyholder can use dividends to increase the cash value or death benefits.
Evidence of InsurabilityA signed health questionnaire or a physical examination, depending on a company's requirement.
Face ValueThe initial amount of death benefit provided by the policy as shown on the front page of the contract. The actual death benefit may be higher or lower depending on the options selected, outstanding policy loans or premium owed.
Flexible Premium Annuity ContractAn annuity that permits varying premium payments from year to year, and which is often used for IRAs.
Free-Look PeriodThe time period after a life insurance policy or an annuity is delivered during which the policy owner may review it and return it to the company for a full refund of the initial premium.
Grace PeriodThe time, usually 30 days, during which a policy remains in force after the premium is due but not paid. The policy lapses as of the day the premium was originally due unless the premium is paid before the end of the 30 days or the insured dies during the grace period.
Guaranteed Insurability RiderA rider attached to a life insurance policy which permits you to buy additional insurance at one or more specified "option dates" without providing new evidence of insurability at that time.
Guaranteed Minimum Interest RateThe lowest interest rate a company will credit to a fixed annuity accumulation fund.
Immediate AnnuityAnnuity payments that begin immediately or within about a year after the time you purchase the annuity.
IncontestabilityA provision that places a two-year time limit on a company's right to deny payment of a claim because of a material misrepresentation on your application.
Initial Interest RateThe interest rate that the insurance company credits to your premium when first issuing the policy. The company may guarantee this rate for one or more years. Otherwise, the rate is not guaranteed, and may change at the discretion of the company.
LapseTermination of a policy because of failure to pay the premium.
LoadAny sales fees or charges you pay in purchasing a policy or annuity.
Material MisrepresentationA significant misstatement in an application form. If a company had access to the correct information at the time of application, the company might not have agreed to accept the application.
Paid-Up AdditionsAdditional life insurance purchased with policy dividends. No additional premium payments are needed for paid-up additions.
Payout PeriodThe period during which you receive the income from your annuity. Also known as the annuitization phase.
Policy OwnerThe person who owns an individual life insurance policy or annuity. This person may be the insured, the annuitant, the beneficiary or another person. The policy owner usually is the one who pays the premium and is the only person who may make changes to a policy.
Rated PolicyA policy issued at a higher premium to cover a person classified as a greater-than-average risk, usually due to impaired health or a dangerous occupation.
ReplacementA replacement happens when a consumer uses some or all of the value of life insurance or an annuity that the consumer currently owns to buy a new life insurance policy or annuity contract.
RiderA written amendment attached to an insurance policy expanding or limiting the benefits otherwise payable under an insurance policy.
Scheduled Premium Annuity ContractAn annuity that defines, in the contract, the size and frequency of premiums you must pay.
Surrender ChargesCharges that are deducted if your life insurance policy or annuity is cashed in (surrendered). The amount of the surrender charges vary widely among insurance companies and may change over the life of the policy.
Tax-Qualified AnnuityAn annuity that allows you to deduct your premium payments from your taxable income when filing your tax return with the IRS.
UnderwriterThe person who reviews an application for insurance and decides if the applicant is acceptable and at what premium rate.
Labels: www.legacyannuities.com
www.legacyannuities.com
How much is my annuity insured for if my insurance company goes out of business?
State Guaranty Associations:for informational use only. This information is not intended as legal advice, and no liability is assumed in connection with its use. Users should seek advice from a qualified attorney and should not rely on this compilation when considering any questions relating to guaranty association coverage.
Alabama Life & Disability Insurance Guaranty Association
www.allifega.org
Alaska Life & Health Insurance Guaranty Association
www.aklifega.org
Arizona Life & Disability Insurance Guaranty Fund
http://www.state.az.us/id/
Arkansas Life and Health Insurance Guaranty Association
www.arlifega.org
Asociación de Garantia de Seguros de Vida e Incapacidad de Puerto Rico
http://www.ocs.gobierno.pr/
California Life & Health Insurance Guarantee Association
hwww.califega.org
Colorado Life & Health Insurance Protection Association
www.lhipa.org
Connecticut Life and Health Insurance Guaranty Association
www.ctlifega.org
Delaware Life & Health Insurance Guaranty Association
www.delifega.org
District of Columbia Life & Health Insurance Guaranty Association
www.dclifega.org
Florida Life & Health Insurance Guaranty Association
www.flahiga.org
Georgia Life & Health Insurance Guaranty Association
www.gaiga.org
Hawaii Life & Disability Insurance Guaranty Association
www.hilifega.org
Idaho Life & Health Insurance Guaranty Association
www.idlifega.org
Illinois Life & Health Insurance Guaranty Association
www.ilhiga.org
Indiana Life and Health Insurance Guaranty Association
www.inlifega.org
Iowa Life & Health Insurance Guaranty Association
www.ialifega.org
Kansas Life & Health Insurance Guaranty Association
www.kslifega.org
Kentucky Life & Health Insurance Guaranty Association
www.klhiga.org
Life Insurance Company Guaranty Corporation of New York
www.nylifega.org
Louisiana Life & Health Insurance Guaranty Association
www.lalifega.org
Maine Life & Health Insurance Guaranty Association
www.melifega.org
Maryland Life & Health Insurance Guaranty Corporation
www.mdlifega.org
Massachusetts Life & Health Insurance Guaranty Association
www.malifega.org
Michigan Life & Health Insurance Guaranty Association
www.milifega.org
Minnesota Life & Health Insurance Guaranty Association
www.mnlifega.org
Mississippi Life & Health Insurance Guaranty Association
www.mslifega.org
Missouri Life & Health Insurance Guaranty Association
www.mo-iga.org
Montana Life & Health Insurance Guaranty Association
www.mtlifega.org
Nebraska Life & Health Insurance Guaranty Association
www.nelifega.org
Nevada Life & Health Insurance Guaranty Association
www.nvlifega.org
New Hampshire Life & Health Insurance Guaranty Association
www.nhlifega.org
New Jersey Life & Health Insurance Guaranty Association
www.njlifega.org
New Mexico Life Insurance Guaranty Association
www.nmlifega.org
North Carolina Life & Health Insurance Guaranty Association
www.nclifega.org
North Dakota Life & Health Insurance Guaranty Association
www.ndlifega.org
Ohio Life & Health Insurance Guaranty Association
www.olhiga.org
Oklahoma Life & Health Insurance Guaranty Association
www.oklifega.org
Oregon Life & Health Insurance Guaranty Association
www.orlifega.org
Pennsylvania Life & Health Insurance Guaranty Association
www.palifega.org
Rhode Island Life & Health Insurance Guaranty Association
www.rilifega.org
South Carolina Life, Accident & Health Insurance Guaranty Association
www.sclifega.org
South Dakota Life & Health Insurance Guaranty Association
www.sdlifega.org
Tennessee Life & Health Insurance Guaranty Association
www.tnlifega.org
Texas Life, Accident, Health & Hospital Service Insurance Guaranty Association
www.txlifega.org
Utah Life & Health Insurance Guaranty Association
www.utlifega.org
Vermont Life & Health Insurance Guaranty Association
www.vtlifega.org
Virginia Life, Accident, & Sickness Insurance Guaranty Association
www.valifega.org
Washington Life & Disability Insurance Guaranty Association
www.walifega.org
West Virginia Life & Health Insurance Guaranty Association
www.wvlifega.org
Wisconsin Insurance Security Fund
www.wilifega.org
Wyoming Life & health insurance Guaranty Associationwww.wlhiga.org
How much is my annuity insured for if my insurance company goes out of business?
State Guaranty Associations:for informational use only. This information is not intended as legal advice, and no liability is assumed in connection with its use. Users should seek advice from a qualified attorney and should not rely on this compilation when considering any questions relating to guaranty association coverage.
Alabama Life & Disability Insurance Guaranty Association
www.allifega.org
Alaska Life & Health Insurance Guaranty Association
www.aklifega.org
Arizona Life & Disability Insurance Guaranty Fund
http://www.state.az.us/id/
Arkansas Life and Health Insurance Guaranty Association
www.arlifega.org
Asociación de Garantia de Seguros de Vida e Incapacidad de Puerto Rico
http://www.ocs.gobierno.pr/
California Life & Health Insurance Guarantee Association
hwww.califega.org
Colorado Life & Health Insurance Protection Association
www.lhipa.org
Connecticut Life and Health Insurance Guaranty Association
www.ctlifega.org
Delaware Life & Health Insurance Guaranty Association
www.delifega.org
District of Columbia Life & Health Insurance Guaranty Association
www.dclifega.org
Florida Life & Health Insurance Guaranty Association
www.flahiga.org
Georgia Life & Health Insurance Guaranty Association
www.gaiga.org
Hawaii Life & Disability Insurance Guaranty Association
www.hilifega.org
Idaho Life & Health Insurance Guaranty Association
www.idlifega.org
Illinois Life & Health Insurance Guaranty Association
www.ilhiga.org
Indiana Life and Health Insurance Guaranty Association
www.inlifega.org
Iowa Life & Health Insurance Guaranty Association
www.ialifega.org
Kansas Life & Health Insurance Guaranty Association
www.kslifega.org
Kentucky Life & Health Insurance Guaranty Association
www.klhiga.org
Life Insurance Company Guaranty Corporation of New York
www.nylifega.org
Louisiana Life & Health Insurance Guaranty Association
www.lalifega.org
Maine Life & Health Insurance Guaranty Association
www.melifega.org
Maryland Life & Health Insurance Guaranty Corporation
www.mdlifega.org
Massachusetts Life & Health Insurance Guaranty Association
www.malifega.org
Michigan Life & Health Insurance Guaranty Association
www.milifega.org
Minnesota Life & Health Insurance Guaranty Association
www.mnlifega.org
Mississippi Life & Health Insurance Guaranty Association
www.mslifega.org
Missouri Life & Health Insurance Guaranty Association
www.mo-iga.org
Montana Life & Health Insurance Guaranty Association
www.mtlifega.org
Nebraska Life & Health Insurance Guaranty Association
www.nelifega.org
Nevada Life & Health Insurance Guaranty Association
www.nvlifega.org
New Hampshire Life & Health Insurance Guaranty Association
www.nhlifega.org
New Jersey Life & Health Insurance Guaranty Association
www.njlifega.org
New Mexico Life Insurance Guaranty Association
www.nmlifega.org
North Carolina Life & Health Insurance Guaranty Association
www.nclifega.org
North Dakota Life & Health Insurance Guaranty Association
www.ndlifega.org
Ohio Life & Health Insurance Guaranty Association
www.olhiga.org
Oklahoma Life & Health Insurance Guaranty Association
www.oklifega.org
Oregon Life & Health Insurance Guaranty Association
www.orlifega.org
Pennsylvania Life & Health Insurance Guaranty Association
www.palifega.org
Rhode Island Life & Health Insurance Guaranty Association
www.rilifega.org
South Carolina Life, Accident & Health Insurance Guaranty Association
www.sclifega.org
South Dakota Life & Health Insurance Guaranty Association
www.sdlifega.org
Tennessee Life & Health Insurance Guaranty Association
www.tnlifega.org
Texas Life, Accident, Health & Hospital Service Insurance Guaranty Association
www.txlifega.org
Utah Life & Health Insurance Guaranty Association
www.utlifega.org
Vermont Life & Health Insurance Guaranty Association
www.vtlifega.org
Virginia Life, Accident, & Sickness Insurance Guaranty Association
www.valifega.org
Washington Life & Disability Insurance Guaranty Association
www.walifega.org
West Virginia Life & Health Insurance Guaranty Association
www.wvlifega.org
Wisconsin Insurance Security Fund
www.wilifega.org
Wyoming Life & health insurance Guaranty Associationwww.wlhiga.org
Labels: www.legacyannuities.com
Wednesday, May 09, 2007
Help With My Annuity
By: Sherman Hu
With my annuities." Nothing has changed...just a lonely senior who can't trust anybody with her annuity because every time she asks for advice, someone tries to make her invest in a different annuity...Sound familiar? Well you are not alone.Often times when speaking to a senior about their annuities, I ask them their biggest complaint. Time and time again they say that it is hard to find someone who can help them with their annuity without trying to sell them another one. It is not uncommon. The truth of the matter is, many annuity agents are not out to help the client, but to help themselves (I am sure you are not surprised). They want to make the "fast buck" without regards for the client's needs or investment objectives. The unfortunate part is that, this isn't going to change.Honest help with an annuity is hard to find. Insurance agents don't get paid for their time, they usually only get paid for making a sale. So it's no wonder why they always recommend another annuity. I once visited someone who needed help with an annuity that an agent "talked him into." The problem was, in order to get into this annuity, the agent talked him into surrendering his old annuity and paying a $13,000 surrender charge to do so-AND THE ANNUITY HE PUT HIM INTO WAS WORSE THAN THE ANNUITY HE GOT HIM OUT OF...When I asked him why he called the other salesperson in the first place, he told me he just needed to make a small withdrawal from his annuity and didn't know how...And the agent tricked him into switching it into another annuity and paying a huge surrender charge which he could never recover due to his age...Fortunately it wasn't too late and we were able to reverse his transaction.However, good help is hard to find. There is no doubt. This may come as no surprise but my recommendation to anyone who needs help is to first purchase the book "Annuities: The Shocking Truths Revealed." Sure, I wrote it and sure I have a vested interest in saying that, but at least it talks about annuities in a way that anyone can understand them. And at least it points out all the things people who own annuities or are looking for annuities need to be careful of. Most importantly, it points out the dirty little secrets that agents never tell you about annuities.The bottom line is this. If you need help with your annuity, you need to be vigilant. Many agents are out there for their own good and you must be aware of this. Utilize your resources and learn the right questions to ask your agent before making a decision (Also found in the book). Sure, you may just give up and never get help but the worst decision is no decision. Help with your annuity is hard to find, but not impossible...that's why I wrote the book!!! Good luck and remember... Ignorance is not bliss...
About the Author:Sherman Hu
By: Sherman Hu
With my annuities." Nothing has changed...just a lonely senior who can't trust anybody with her annuity because every time she asks for advice, someone tries to make her invest in a different annuity...Sound familiar? Well you are not alone.Often times when speaking to a senior about their annuities, I ask them their biggest complaint. Time and time again they say that it is hard to find someone who can help them with their annuity without trying to sell them another one. It is not uncommon. The truth of the matter is, many annuity agents are not out to help the client, but to help themselves (I am sure you are not surprised). They want to make the "fast buck" without regards for the client's needs or investment objectives. The unfortunate part is that, this isn't going to change.Honest help with an annuity is hard to find. Insurance agents don't get paid for their time, they usually only get paid for making a sale. So it's no wonder why they always recommend another annuity. I once visited someone who needed help with an annuity that an agent "talked him into." The problem was, in order to get into this annuity, the agent talked him into surrendering his old annuity and paying a $13,000 surrender charge to do so-AND THE ANNUITY HE PUT HIM INTO WAS WORSE THAN THE ANNUITY HE GOT HIM OUT OF...When I asked him why he called the other salesperson in the first place, he told me he just needed to make a small withdrawal from his annuity and didn't know how...And the agent tricked him into switching it into another annuity and paying a huge surrender charge which he could never recover due to his age...Fortunately it wasn't too late and we were able to reverse his transaction.However, good help is hard to find. There is no doubt. This may come as no surprise but my recommendation to anyone who needs help is to first purchase the book "Annuities: The Shocking Truths Revealed." Sure, I wrote it and sure I have a vested interest in saying that, but at least it talks about annuities in a way that anyone can understand them. And at least it points out all the things people who own annuities or are looking for annuities need to be careful of. Most importantly, it points out the dirty little secrets that agents never tell you about annuities.The bottom line is this. If you need help with your annuity, you need to be vigilant. Many agents are out there for their own good and you must be aware of this. Utilize your resources and learn the right questions to ask your agent before making a decision (Also found in the book). Sure, you may just give up and never get help but the worst decision is no decision. Help with your annuity is hard to find, but not impossible...that's why I wrote the book!!! Good luck and remember... Ignorance is not bliss...
About the Author:Sherman Hu
Highest CD Annuities
North American Company
North American Builder
10 Yr.
4.83%
Midland National Life
MNL Guarantee Plus 9
9 Yr.
4.90%
Request Info
North American Company
North American Guarantee 8
8 Yr.
4.65%
Midland National Life
MNL Guarantee Plus 7
7 Yr.
4.85%
Beneficial Financial
Guaranteed Advantage 6
6 Yr.
5.04%
Beneficial Financial
Guaranteed Step-Up 5
5 Yr.
4.90%
Request InfoMidland National Life
Direct Guarantee 4
4 Yr.
4.50%
Midland National Life
Direct Guarantee 3
3 Yr.
4.33%
Annuity Investors Life Insurance Company
AssetSelect 2
2 Yr.
4.10%
Beneficial Financial
Advantage 1
1 Yr.
5.02%
North American Company
North American Builder
10 Yr.
4.83%
Midland National Life
MNL Guarantee Plus 9
9 Yr.
4.90%
Request Info
North American Company
North American Guarantee 8
8 Yr.
4.65%
Midland National Life
MNL Guarantee Plus 7
7 Yr.
4.85%
Beneficial Financial
Guaranteed Advantage 6
6 Yr.
5.04%
Beneficial Financial
Guaranteed Step-Up 5
5 Yr.
4.90%
Request InfoMidland National Life
Direct Guarantee 4
4 Yr.
4.50%
Midland National Life
Direct Guarantee 3
3 Yr.
4.33%
Annuity Investors Life Insurance Company
AssetSelect 2
2 Yr.
4.10%
Beneficial Financial
Advantage 1
1 Yr.
5.02%
Labels: www.legacyannuities.com
Tuesday, May 08, 2007
www.legacyannuities.com
Safe Investing with an Equity-Indexed Annuity.
These days it seems investors are looking for safety and security more than ever, especially after the major stock market correction witnessed from 1999-2002. Four years later, numerous brokerage and variable annuity accounts still have not recovered their losses from that time period.
These days it seems investors are looking for safety and security more than ever, especially after the major stock market correction witnessed from 1999-2002. Four years later, numerous brokerage and variable annuity accounts still have not recovered their losses from that time period. Unfortunately, many investors were counting on those funds to provide income during their retirements.
Thus the introduction of the equity indexed annuity, or EIA, to the main stream marketplace. Designed to provide a greater return than the traditional fixed annuity, the equity indexed annuity can be a reliable alternative to a brokerage account. Only fifteen years old, several billion dollars have been deposited into these accounts.
First, a potential investor should have a little background information. Generally, an annuity functions in the following manner: The investor, usually called an owner or annuitant, agrees to deposit funds with an insurance company for a specified period of time, say 7 years. The annuity is said to be in deferral during that period of time. While in deferral, most annuities will allow for partial distributions of interest gains or a yearly 10% free withdrawal or the required minimum distribution mandated by the I.R.S. (Many annuities allow for larger distributions if the owner is confined to a nursing home or is terminally ill.) Still another way to distribute annuity dollars is through a systematic withdrawal, referred to as an annuitization, based on a pre-determined schedule, say 5 years. However, if the consumer decides to take the entire contract out as a lump sum before the annuity has matured, then penalties are invoked based on the surrender schedule in the annuity contract. If the investor passes away, the lump sum of the annuity is paid to a beneficiary at passing unless other arrangements have been made.
Technically, equity indexed annuities are characterized as fixed annuities by the various Departments of Insurance in each state. That is to say, at no point does the investor ever own any variable type of security like a stock, bond or mutual fund within the EIA account. These accounts do not fluctuate in value like a variable annuity might. Yet the equity indexed annuity is not like your typical fixed annuity either.
What makes EIAs different than a traditional fixed annuity is how interest is credited to the account. Typically, the insurance company will buy an option in a particular index like the DOW, S&P 500 or the NASDAQ. After a period of time, usually one year, the option contract comes due. One of two things will then occur. If the market index has advanced, the option is cashed in and interest is credited to the annuity principal. Conversely, if the market has retreated, the option expires and no interest is credited to the account for that year.
In practice, the annuity either gains or maintains value each year, but the investment cannot lose value due to negative market fluctuation. (It is also important to note that all EIAs have a minimum guarantee associated with their returns. For example, this guarantee might state that if the market declines every year over the life of the annuity, the insurance company will guarantee payment of 2% on 88% of the premium deposited. However, it is practically unheard of for this safety feature to be utilized.) Investors should also know that most equity-indexed annuities have a fixed interest account as an additional investment option. When interest rates are high and the stock market is in decline, the fixed account might be used to credit interest to the annuity principal.
How do these annuities perform? Historically many of these accounts have averaged returns of 7% or better. In years when the broader markets have performed well so have EIAs. It is not uncommon for investors to enjoy interest payments during these prosperous years of 10-20% or better. But the crucial value of these accounts is realized during rapid market declines, when the equity indexed annuity will maintain its principal as well as interest gains from past years.
These facts may explain the recent popularity of EIAs, especially among retirees looking to preserve a lifetime's worth of hard work. With the market advancing and declining so rapidly, many consumers are looking for safety and security without having to sacrifice reasonable interest returns. Granted, these annuities will not return 50% in one year, like a fortunate stock or fund pick might, but the peace of mind investors gain knowing their investment cannot decline has many placing a portion of their retirement funds into these accounts.
To learn more about equity-indexed annuities and other insurance products visit: http://www.ohioinsureplan.com
Safe Investing with an Equity-Indexed Annuity.
These days it seems investors are looking for safety and security more than ever, especially after the major stock market correction witnessed from 1999-2002. Four years later, numerous brokerage and variable annuity accounts still have not recovered their losses from that time period.
These days it seems investors are looking for safety and security more than ever, especially after the major stock market correction witnessed from 1999-2002. Four years later, numerous brokerage and variable annuity accounts still have not recovered their losses from that time period. Unfortunately, many investors were counting on those funds to provide income during their retirements.
Thus the introduction of the equity indexed annuity, or EIA, to the main stream marketplace. Designed to provide a greater return than the traditional fixed annuity, the equity indexed annuity can be a reliable alternative to a brokerage account. Only fifteen years old, several billion dollars have been deposited into these accounts.
First, a potential investor should have a little background information. Generally, an annuity functions in the following manner: The investor, usually called an owner or annuitant, agrees to deposit funds with an insurance company for a specified period of time, say 7 years. The annuity is said to be in deferral during that period of time. While in deferral, most annuities will allow for partial distributions of interest gains or a yearly 10% free withdrawal or the required minimum distribution mandated by the I.R.S. (Many annuities allow for larger distributions if the owner is confined to a nursing home or is terminally ill.) Still another way to distribute annuity dollars is through a systematic withdrawal, referred to as an annuitization, based on a pre-determined schedule, say 5 years. However, if the consumer decides to take the entire contract out as a lump sum before the annuity has matured, then penalties are invoked based on the surrender schedule in the annuity contract. If the investor passes away, the lump sum of the annuity is paid to a beneficiary at passing unless other arrangements have been made.
Technically, equity indexed annuities are characterized as fixed annuities by the various Departments of Insurance in each state. That is to say, at no point does the investor ever own any variable type of security like a stock, bond or mutual fund within the EIA account. These accounts do not fluctuate in value like a variable annuity might. Yet the equity indexed annuity is not like your typical fixed annuity either.
What makes EIAs different than a traditional fixed annuity is how interest is credited to the account. Typically, the insurance company will buy an option in a particular index like the DOW, S&P 500 or the NASDAQ. After a period of time, usually one year, the option contract comes due. One of two things will then occur. If the market index has advanced, the option is cashed in and interest is credited to the annuity principal. Conversely, if the market has retreated, the option expires and no interest is credited to the account for that year.
In practice, the annuity either gains or maintains value each year, but the investment cannot lose value due to negative market fluctuation. (It is also important to note that all EIAs have a minimum guarantee associated with their returns. For example, this guarantee might state that if the market declines every year over the life of the annuity, the insurance company will guarantee payment of 2% on 88% of the premium deposited. However, it is practically unheard of for this safety feature to be utilized.) Investors should also know that most equity-indexed annuities have a fixed interest account as an additional investment option. When interest rates are high and the stock market is in decline, the fixed account might be used to credit interest to the annuity principal.
How do these annuities perform? Historically many of these accounts have averaged returns of 7% or better. In years when the broader markets have performed well so have EIAs. It is not uncommon for investors to enjoy interest payments during these prosperous years of 10-20% or better. But the crucial value of these accounts is realized during rapid market declines, when the equity indexed annuity will maintain its principal as well as interest gains from past years.
These facts may explain the recent popularity of EIAs, especially among retirees looking to preserve a lifetime's worth of hard work. With the market advancing and declining so rapidly, many consumers are looking for safety and security without having to sacrifice reasonable interest returns. Granted, these annuities will not return 50% in one year, like a fortunate stock or fund pick might, but the peace of mind investors gain knowing their investment cannot decline has many placing a portion of their retirement funds into these accounts.
To learn more about equity-indexed annuities and other insurance products visit: http://www.ohioinsureplan.com
www.legacyannuities.com
Highest CD Annuity Rates
North American Company
North American Builder
10 Yr.
4.83%
Midland National Life
MNL Guarantee Plus 9
9 Yr.
4.90%
North American Company
North American Guarantee 8
8 Yr.
4.65%
Midland National Life
MNL Guarantee Plus 7
7 Yr.
4.85%
Beneficial Financial
Guaranteed Advantage 6
6 Yr.
5.04%
Beneficial Financial
Guaranteed Step-Up 5
5 Yr.
4.90%
Midland National Life
Direct Guarantee 4
4 Yr.
4.50%
Midland National Life
Direct Guarantee 3
3 Yr.
4.33%
Annuity Investors Life Insurance Company
AssetSelect 2
2 Yr.
4.10%
Beneficial Financial
Advantage 1
1 Yr.
5.02%
Highest CD Annuity Rates
North American Company
North American Builder
10 Yr.
4.83%
Midland National Life
MNL Guarantee Plus 9
9 Yr.
4.90%
North American Company
North American Guarantee 8
8 Yr.
4.65%
Midland National Life
MNL Guarantee Plus 7
7 Yr.
4.85%
Beneficial Financial
Guaranteed Advantage 6
6 Yr.
5.04%
Beneficial Financial
Guaranteed Step-Up 5
5 Yr.
4.90%
Midland National Life
Direct Guarantee 4
4 Yr.
4.50%
Midland National Life
Direct Guarantee 3
3 Yr.
4.33%
Annuity Investors Life Insurance Company
AssetSelect 2
2 Yr.
4.10%
Beneficial Financial
Advantage 1
1 Yr.
5.02%
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