Annuities

What is an Annuity?
An annuity is a product that gives the ability to accumulate funds on a tax-deferred basis, and provides for systematic payouts through various Settlement Options. These include providing a guaranteed income for life, the lives of two people, or for a guaranteed period of time.

How prepared are you for retirement?
Financial experts agree that you'll need a good portion of your pre-retirement income to maintain a comfortable retirement. Social Security and a company pension can help, but for many people retirement income comes from personal savings.

Why Invest in Annuities?

  • Tax Advantages - Taxes are a big issue with most people saving for retirement. One of the great advantages of annuities is that earnings grow on a tax-deferred basis until you start receiving a payout. This means your money grows faster because income taxes won't be payable until distribution payments are made from the annuity, usually when you are retired and in a lower tax bracket.
  • Potential for Lifetime Income - Financial security is a common worry for retirees. Annuities provide an option for a steady stream of income for life that you cannot outlive, which can be especially useful for people who do not have a retirement or pension plan to rely on. A lifetime payout could also help pay for Medicare Supplement or Long Term Care insurance, or a grandchild's college education.
  • Payout Flexibility - Annuities offer a broad range of payout options, including a lump sum, payments for a certain period of time, or payments for life. So you have the flexibility to choose a payout plan that best meets your needs when you retire.

Let me help you build a better retirement with tax-deferred saving now and lifetime income later. Our annuities offer competitive interest rates, withdrawal privileges and guaranteed return of principal. Choose from a variety of fixed annuities:

  • Deferred annuities - tax deferral speeds the growth of your money

a,  Flexible premium annuities - you can add money to your annuity at any time
b,  Single premium annuities - if you are looking for a secure option for investing a lump sum

  • Immediate annuities - if you wish to convert accumulated wealth into a guaranteed income that begins right away
  • Fixed indexed annuities - combine the safety of a fixed interest rate with the performance of the stock market

Annuities can be used to fund IRAs, including the popular Roth IRA. You can also transfer or rollover an existing annuity, 401(k), 403(b) or pension plan into a Bankers annuity.
If you want more than fixed guaranteed returns (such as those offered by CDs) but can’t risk principal and prior earnings in order to enjoy higher returns, an Index Annuity (IA) may be the right product to recommend. They can earn stock market-linked returns without risking principal and still enjoy tax-deferred earnings.
Types of Annuities

  • Flexible Premium Deferred Annuity (FPDA) - A deferred annuity is one in which benefit payouts begin at a future date. With a flexible premium deferred annuity, you can vary the amount and frequency of premium payments (within limits specified by the contract). For example, if you are saving for retirement you might start by contributing $100/month to an FPDA, and adjust the amount and/or timing later, depending on your needs. Or you may opt to make a lump-sum contribution at any time. The interest earned accumulates on a tax-deferred basis, until benefit payouts begin.
  • Single Premium Deferred Annuity (SPDA) - A deferred annuity is one in which benefit payouts begin at a future date. With a single premium deferred annuity, the annuity owner makes one premium payment at the inception of the contract. This payment and the interest earned accumulate on a tax-deferred basis, until benefit payouts begin.
  • CD Annuity - A type of deferred annuity that guarantees a fixed interest rate for a specified period of time (typically 5-10 years). The rate is set at the time you purchase the annuity. Similar to a bank Certificate of Deposit, your interest rate does not change for the duration of the rate guarantee period you've selected.
  • Fixed Indexed Annuity - A fixed indexed annuity is a fixed deferred annuity that earns interest or provides benefits that are linked to an interest rate or index. The value of the most commonly used index, the Standard & Poor's 500 (registered mark) Composite Stock Price Index, or any other index varies from day to day and is not predictable.
  • Variable Annuity - With a variable annuity you select from a range of investment options, typically mutual funds that invest in stocks, bonds, money market instruments, or some combination of the three. The value of your annuity will vary depending on the performance of the investment options you choose. Earnings accumulate on a tax-deferred basis.

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Insurers and their representatives are not permitted by law to offer tax or legal advice. The general information here was written to support the sales, marketing or service of insurance policies by previous experience and data. Based on individuals’ particular circumstances and objectives, they should seek specific advice from their own qualified and duly licensed independent tax or legal advisors. No one may rely upon or use the information here for the purpose of avoiding any tax or tax penalty that may be imposed by the Internal Revenue Code or other applicable law.