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Our Fixed Annuities are designed with many features to help
you achieve your goals for retirement. They offer the option to
select from one year to ten year guarantees.
 No Initial Sales Charges or Administrative Fees
Since there are no initial charges or fees, your entire premium is working
for you, immediately earning tax-deferred interest. Commissions do
not come from your investment! There are no monthly fees, nor costs
of any kind.
Tax-Deferred Growth
All annuity values accumulate
tax-deferred. With a fixed annuity your money grows faster
because you earn interest on dollars that would otherwise be paid on
taxes. Your principal earns interest, your interest earns interest
(compounding), and the money you save in taxes earns interest. With
this tax deferred status, you can accumulate more money over a shorter
period of time and can consequently earn a greater return.
EXAMPLE:
| |
Currently
Taxed |
Fixed
Annuity |
| Dollar Amount |
$100,000 |
$100,000 |
| Interest Rate |
5% |
5% |
| Interest Earned |
$5,000 |
$5,000 |
| Tax Bracket |
28% |
28% |
| Tax Payable |
$1,400 |
$0 |
| After Tax Interest |
$3,600 |
$5,000 |
| After Tax Yield |
3.6% |
5.0% |
|
*Assuming no
withdrawals
Current
multi-year guaranteed rates
| 4.90% for 9 years |
| 4.55% for 7 years |
| 5.50% for 1 year |
Split Annuity Example
Many of our fixed income clients
today are living on less income, and they are not happy about
it. The lower interest rates we've had in the past years are catching up to our best customers. CD rates are much
lower, municipal bonds are lower, and fixed annuity rates are
rising. Our customers are either consuming some of their
principal in order to maintain current income or giving up safety and
taking more investment risks. There is a simple, time-tested idea
that might help.
An Immediate annuity AND a
Deferred annuity, traditionally called a Split Annuity.
While this classic annuity planning concept works well when interest
rates are high and it also works very well at times like these. Our
customers can increase their after-tax income and protect their
principal.
EXAMPLE:
A $100,000 five year CD @ 5% pays
$416 per month.
Note - This full amount is taxable, and if you are in the 28% tax
bracket, you pay $116 in taxes. Your net amount becomes $300
per month.
Now let us see how a Split
Annuity works...
You purchase a Deferred Fixed
Annuity with $76,550 of the $100,000. The remaining $23,450
buys a 5-year Immediate Certain Annuity.
The Immediate Annuity will pay
you $422 per month, of which only 10% is taxable, therefore the net
amount to you becomes $410 per month.
And what happens to your $76,550
in the Deferred Fixed Annuity?
Well it grows and becomes worth $100,000 in five years. You have
a 30-day window to take the $100,000 or roll it over into another
Split Annuity plan.
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