|Annuity Strategies To Consider. |
investment accounts have lost so much money, I can't afford to transfer my funds
to an annuity, the market might go way up."
an Equity Indexed Annuity.
Equity-Index Annuities are tied to various indexes
such as the S&P Index, Nasdaq, the Moody Bond Index, Lehman Brothers
Bond Index, The Dow...., they offer the opportunity to choose how your annual
rate of return will be calculated. With an Equity-Index Annuity you can take advantage
of the market increases with out the risk of loss of principle. This is a Win-Win.
in mind that not all Equity-index annuities are the same, there are several moving
parts in an Equity-Index Annuity that allow the issuing company to change. See
"The Truth About Equity-Index
- Another popular strategy used to help offset
the cost of moving from a poor performing Fixed or Variable Annuities or to offset
e surrender charges that might be imposed or losses in the market is a Bonus Annuity
or Bonus Index Annuity.
Bonus Annuities/ Bonus Equity Index annuities
have been introduced by a number on annuity issuing companies over the past several
years. Unlike a no surrender charge annuity, this type Annuity do have penalties
for early withdrawal. The bonus can be as much as 10% of your payment.
- Consider a Two-tiered Annuity if you need a flow of income at some point in
Currently you are in your retirement asset accumulation
period and do not need to have full access to your funds (most two-tiered annuities
offer a partial withdrawal without a penalty). In 5, 10 or more years you
know you will want a flow of income from your retirement funds to begin.
two-tiered Annuity might be Ideal for your needs. This type annuity will generally
offer higher rate guaranties and higher than normal signing bonus than a one tiered
Annuity. Because they require that you annuities the annuity and take your money
out over a period of time rather than a lump sum.
Critics of the Two-tiered
annuity say that you give up too much control with your money with this type of
an annuity, yet in the right situation this could be a great annuity to own.
Annuities come in many forms Fixed-Rate, Equity-Index and Bonus Annuities.
feature can be perfect for the person that income for Retirement income is their
- Low Certificate of Deposit rates and current income
Annuities offer a safe alternative to CDs.
Consider a Charitable Remainder
Income Annuity Trust (CRIT's).
- Tax differed returns
- Avoid Probate
This is a powerful financial planning
option. With a CRIT the trust donor and family receive a guaranteed flow
of income for a set period of time or for Life. It may also qualify you for a
current tax deduction.
After this, the remaining trust assets go to the
charitable organization(s) you named. Since the trust is not part of your estate,
trust assets are not subject to estate taxes.
This financial planning vehicle
allows you to place assets in trust. You can qualify for a current tax deduction
when you fund the trust. Trust assets can provide a stream of income to you and/or
your named beneficiary(ies) for a set time period or for life. After this, the
remaining trust assets go to the charitable organization you named. Since the
trust is not part of your estate, trust assets are not subject to estate taxes.
your health allows you could also consider a life insurance policy, with part
of the trust income used to pay the life insurance premiums. Then upon your death
the life insurance would pass to your heirs and the trust assets pass to the named
- Consider Equity-Index Immediate Annuities for current income.
Immediate annuities are used for generating income. You deposit a
fixed dollar amount and receive a guaranteed income stream for a variety of different
time frames including the rest of both your and your spouse's life if you wish.
Most of these annuities credit around 3% to the cash values remaining in the annuity
while you receive the income.
Equity-Index immediate annuities offer a guaranteed
rate of return with the opportunity to have an increase in current income if the
market moves upward. SEE:
- Use a Fixed Annuity and Immediate Annuity to create
a Split Annuity Concept.
Split annuities divide your money into two
portions. One portion is set aside and left to grow back to your original total
deposit amount. The other side is set up to pay you an income stream during the
same time frame. This type of plan is designed to give you current income and
preserve your original deposit amount. Rather than buying one split annuity policy
from one company, find the company with the most competitive pay out and then
the best company for letting the other portion grow. Most companies will focus
on being strong in one area or another. Rarely will the same company offer the
most competitive product in both areas.
Let us know if you need any help
or have any questions regarding these or any other investment strategies.