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Did you know that individuals hold about $2.5 trillion in annuity contracts? Discover the basics of annuities, their types, and potential benefits in this insightful post. #Annuities #FinancialPlanning #InvestmentInsights https://lnkd.in/eNDgeN5d

ANNUITIES AND IT'S TYPES An annuity in finance is a stream of regular payments over a set period of time. Insurance companies have built a class of financial products around the concept, which combine a long-term investment with a payment stream. What makes annuities products unique is that the payment stream is made to the investor for the rest of their life. Wealthy individuals are often able to build a sufficient amount of assets to live comfortably off the income from those assets for as long as they live. 1) Fixed Annuity = Fixed annuities offer a fixed rate of return during the accumulation phase. 2) Variable Annuity = Variable annuities offer a rate of return commensurate with the performance of the financial market during the accumulation phase. 3) Indexed Annuity = An indexed annuity is a hybrid of a fixed and variable annuity with characteristics of both. It will usually have a minimum fixed rate of return and be tied to the performance of a market index such as the S&P 500 index. 4) Immediate Annuity = An immediate annuity is one where you have accumulated assets on your own and you want to immediately convert those assets to an annuity. Someone who is liquidating a 401k plan and preparing to retire might select this type of annuity. 5) Deferred Annuity = A deferred annuity is one where you intend to add money over time during an accumulation phase before annuitizing. This is what you would use if you are not yet ready to retire. #Annuities #RetirementPlanning #FinancialSecurity #InvestmentStrategies #FixedAnnuities #VariableAnnuities #ImmediateAnnuities #DeferredAnnuities #LifetimeIncome #TaxDeferred #PensionOptions #RetirementIncome #GuaranteedIncome #AnnuityRates #AnnuityOptions #IndexedAnnuities #LongevityProtection #SavingsGoals #FinancialFreedom #SmartInvesting

Comprehending the Death Benefit of a Variable Annuity

Just because there is a safe harbor in the Secure Act with respect to the credit quality of annuity issuers, Fiduciaries shouldn’t turn a blind eye to obvious market forces. The primary arguments set forth in the recent AT&T and Lockheed Martin litigation – that plan fiduciaries sacrificed the credit quality of the annuity issuer to pay a lower price for the group annuity contract – lay a potential foundation for undermining the safe harbor provision of the Secure Act. In these cases, the plaintiff’s argument rests on the market fact that pricing of annuities, in part, is based upon the market’s perception of the credit strength of the issuer.  Stronger credit quality issuers can charge a premium for the strength of their balance sheet. And, of course, the opposite is true as well.  It is very clear that the safe harbor does not apply to the fiduciary’s assessment of the reasonableness of the price of the annuity. Therefore, won't fiduciaries be forced into assessing the relationship between the credit quality of the issuer and the price of the annuity... possibly eroding the protection of the safe harbor? Please read my most recent Blog piece for a more detailed outline of my concerns. And, I’d love to hear from you whether you agree or disagree. Retirement income is at stake. https://lnkd.in/eraasSRu

Comprehending the Death Benefit of a Variable Annuity

I get this question a lot, should I add a variable annuity to my portfolio? This may help answer your question, but feel free to run any questions about annuities by me. https://lnkd.in/gGN3MAtv #NationalAnnuityAwarenessMonth #VariableAnnuity

Hey there, explorers! Let's talk about something cool called a "Fixed Index Annuity." Imagine you have a special money jar. You put some money in it, and it grows over time, just like a magical garden. Now, this annuity thing works a bit like that money jar, it keeps growing safely. But here's the really cool part: when you get older and ready to stop working, the annuity can turn into a special kind of piggy bank. It can give you money every month, kind of like a treasure chest that opens up for you! You see, this special annuity has a superpower. It's connected to something called the "stock market," which is like a place where companies' values go up and down. But the annuity is smart. It's not too risky like a rollercoaster. It picks a special way to grow your money that keeps it safe and cozy. So, when you're all done working and want to relax, the annuity turns your saved money into a stream of golden coins that comes to you every month. It's like getting a special allowance, but you get it forever and ever, even when you're really, really old. And that's how a Fixed Index Annuity works, my friends! It's like a treasure box that keeps growing your money and gives you a special lifetime allowance when you're all grown up. Just remember, it's important to talk to your Financial Coach about these things so they can help you make the best choices for your future adventures!

When inheriting an annuity, you typically have several payout options: Lump-sum payout: You can take the entire remaining value of the annuity in a single lump sum payment. However, this option may result in a significant tax liability in the year you receive the payout. Five-year rule: You can withdraw the entire annuity value over a period of up to five years, spreading out the tax burden. This option is available for both qualified and non-qualified annuities. Non-qualified stretch (lifetime payout): For non-qualified annuities, you can opt to receive periodic payments based on your life expectancy, allowing you to stretch out the payments and tax liability over your lifetime. Rollover to an inherited IRA: If it's a qualified annuity, you may be able to roll it over into an inherited IRA and take required minimum distributions based on your life expectancy, deferring taxes until distributions are taken. Spousal continuation: If you are the surviving spouse, you can often continue the annuity contract as the new owner, deferring payouts and taxes. The optimal choice depends on your specific financial situation, age, tax bracket, and whether the annuity is qualified or non-qualified. Consulting a financial advisor can help determine the most tax-efficient payout strategy. index Annuities with no market risks, tax deferred and more text 4088541883 Connie Dello Buono 4088541883

I get this question a lot, should I add a variable annuity to my portfolio? This may help answer your question, but feel free to run any questions about annuities by me. https://lnkd.in/gBt8-5Y4 #NationalAnnuityAwarenessMonth #VariableAnnuity

A colleague has written an article with 7 great steps to annuity purchasing power. Click here - https://lnkd.in/dWmc5X2a Annuities are often misunderstood and can be complex, but the purchasing process doesn’t have to be. Here is a comprehensive guide to the annuity purchasing process.