CD Alternative

Guarenteed 11% first year return

No Cap on gains

10% Free withdrawals after year 1

Only companies -A rated or better

Tax deferred gains

No risk of loss

Companies we use:

  • Aviva
  • Ing
  • Fidelity and Guarranty
  • Allianz
  • National Western
  • Lincoln Financial Group
  • North American
  • Forethought
  • American General
  • The Standard

and Many Others

What is an Annuity?

In the United States an annuity contract is created when an insured party, usually an individual, pays a life insurance company a single premium that will later be distributed back to the insured party over time.  Annuity contracts traditionally provide a guaranteed distribution of income until the death of the person or persons named in the contract or until a final date, whichever comes first. However, the majority of modern annuity customers use annuities only to accumulate funds free of income and capital gains taxes and later take lump-sum withdrawals without using the guaranteed-income-for-life feature.

 

What does that mean for me?

 

Annuities come in all shapes and sizes with special features to meet needs of all individual.  

John's Examples:

John is a 55 year old federal worker with a FERS pension and Thrift Savings Plan(TSP) of  $100,000.  He has planned his future wisely and doesn't need to use the TSP for retirement income, but would rather use it for later or even never use the money and leave it for his family.

For John, moving his money to a new IRA would make sense.  He should look for something that could do the following:

  • Guaranteed returns
  • Available for emergency
  • Leave a legacy behind for his family

***So for him a straight forward annuity, with maybe a 10% premuim bonus could work best. A guaranteed way to take his IRS required minumum distribution at age 70 1/2 while still growing beyond his originally deposited amount.  A CD or investment could not guarantee that.  Nor could they differ taxes due on growth while an annuity can.

 

Let's say John needs to live on the TSP as well as his pension.  John should then buy an immediate annuity which gives him a lifetime income pay check and could even cover his spouse when he dies.

 

Let's change the example and say that John has the pension but has no TSP.  He instead has CD's that he has stockpiled over the years or perhaps a life insurance payout which gave him that same $100,000 to start with.

CD's interest is taxable and currently pays under 3%.  After taxes they pay around 2%.  If an annuity averages around 6-7% with no risk of loss, where should John put his money?  It's an easy answer for John.

 

For more information call our FREE REPORT LINE 24 hours a day at

1-800-508-3527