Annuities

Arizona Annuities Services

Many people are not prepared for their retirement. The largest group of retirees is the baby boomers and there are projected to be as many as 60 million baby boomers retiring within the next 5 years. Securing a significant source of retirement income, guaranteed for life is a top financial goal for virtually all baby boomers. When boomers acknowledge they are not financially prepared for a retirement that could last more than 30 years, guaranteed lifetime income, protection against investment losses, and sufficient income to meet rising health care costs are some of their most important financial planning objectives.

Our representatives offer clients advice that provides them with higher potential returns, but also addresses taxes, estate planning and guaranteed income concerns. So contact us today!

More About Annuities

The earnings of an annuity can either be fixed, or contributed to an index crediting account. Annuities are offered by insurance companies.

• Insurance Protection: Annuities do not have FDIC protection. Annuities have safety measures put in place by the state to ensure Insurance companies have reserve pools in place. Insurance companies may also be vetted for financial strength by obtaining their rating from objective rating firms -- Standard & Poor's, Moody's, A.M. Best or Duff & Phelps . The more solid the rating usually equates to a more solid financial backbone of Insurance Company.
  
  
• Interest Rates: Annuities come in different variations. Fixed annuities will provide for a guarantee minimum return which is guaranteed by the issuing insurance company. It is common to find guarantees which range from 2% to 6%. There are annuities which are linked to a particular index such as the S&P 500 which will credit interest based on that index.
  
  
• Tax treatment: Special treatment needs to be given to qualified and non-qualified. However, all annuities will grow tax-deferred. You only pay taxes on interest earned when money is withdrawn. The deferred tax on your interest remains in the investment earning you more and more money, instead of being paid out to state and federal tax agencies on a yearly basis.
  
  
• Liquidity: Many Annuities have provisions that allow you to withdraw money, generally 10% of your account value annually plus many contracts allow you to remove the earned interest on a monthly basis. Several other contract provisions allow you access to all of your funds such as in the event you are hospitalized, undergoing a life-threatening illness, subjected to a permanent or extended stay in a nursing home, or other major calamities that affect you economically. In addition, annuities can be structured to pay-out for the life of the owner over a fixed term such as five or ten years, thereby spreading out your tax-burden and providing enhanced income security. Annuities are long term savings vehicles and may require a 10% federal tax penalty for withdrawal prior to 59 1/2.
  
  

Further Information About Annuities

• Annuity - Qualified Plan
• Annuities vs. CD's
• Fixed Annuities
• Fixed Index Annuities