Annuity Strategies to Consider
Annuity Strategies To Consider.
  • "My investment accounts have lost so much money, I can't afford to transfer my funds to an annuity, the market might go way up."

Consider 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.

Keep 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 Annuities"


  • 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 the future.

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.

The 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.

Two-tiered Annuities come in many forms Fixed-Rate, Equity-Index and Bonus Annuities.

This feature can be perfect for the person that income for Retirement income is their ultimate goal.

  • Low Certificate of Deposit rates and current income taxes.

Annuities offer a safe alternative to CDs.

  • Annuities offer...
  • Safety
  • Accessibility
  • Tax differed returns
  • Guaranteed lifetime income
  • Avoid Probate
Consider a Charitable Remainder Income Annuity  Trust (CRIT's).

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.

If 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 charity.

  • 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:

Immediate Annuities

  • 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.

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