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💰 Annuities – Quick Explainer
💰 Annuities – Quick Explainer
An annuity is a financial product that guarantees income for life or a set period of time. You contribute money (either all at once or over time), and the annuity grows tax-deferred. Later, you can turn it into a stream of income—often used for retirement.
An annuity is a financial product that guarantees income for life or a set period of time. You contribute money (either all at once or over time), and the annuity grows tax-deferred. Later, you can turn it into a stream of income—often used for retirement.
We offer a variety of annuities depending on your goals!
We offer a variety of annuities depending on your goals!
Fixed Annuity (Predictable & Safe)
Fixed Annuity (Predictable & Safe)
Best for: Conservative savers who want guaranteed growth without market exposure.
Growth: Fixed interest rate (e.g., 3–5%) guaranteed for a set period (3, 5, 7, or 10 years).
Risk Level: No market risk. Your principal and gains are protected.
Payout Options: Lump sum or monthly income at a future date.
Tax Advantage: Growth is tax-deferred until withdrawn.
Great for clients who want safe, predictable growth and guaranteed income in retirement.
Growth: Fixed interest rate (e.g., 3–5%) guaranteed for a set period (3, 5, 7, or 10 years).
Risk Level: No market risk. Your principal and gains are protected.
Payout Options: Lump sum or monthly income at a future date.
Tax Advantage: Growth is tax-deferred until withdrawn.
Great for clients who want safe, predictable growth and guaranteed income in retirement.
Fixed Indexed Annuity (Growth + Protection)
Fixed Indexed Annuity (Growth + Protection)
Best for: Clients who want market-linked growth without market losses.
Growth: Based on the performance of an index (e.g., S&P 500) with a cap and floor.
Cap: Maximum interest earned in a good market year (e.g., 8–12%).
Floor: Minimum interest (typically 0%)—you won’t lose money due to market downturns.
Risk Level: Principal is protected. No direct stock market exposure.
Bonuses: Some offer upfront bonus (e.g., 5–10%) added to your premium.
Income Rider (Optional): Guarantees lifetime income, regardless of market performance.
Ideal for clients nearing or in retirement who want growth with peace of mind.
Growth: Based on the performance of an index (e.g., S&P 500) with a cap and floor.
Cap: Maximum interest earned in a good market year (e.g., 8–12%).
Floor: Minimum interest (typically 0%)—you won’t lose money due to market downturns.
Risk Level: Principal is protected. No direct stock market exposure.
Bonuses: Some offer upfront bonus (e.g., 5–10%) added to your premium.
Income Rider (Optional): Guarantees lifetime income, regardless of market performance.
Ideal for clients nearing or in retirement who want growth with peace of mind.
Immediate Annuity (Instant Income)
Immediate Annuity (Instant Income)
Best for: Retirees needing income now.
Funding: One-time lump sum (e.g., from 401(k), pension, or savings).
Payout Start: Begins within 30 days to 1 year of purchase.
Income Duration:
Life Only (income as long as you live)
Period Certain (e.g., 10 or 20 years)
Joint Life (covers spouse too)
No Growth Phase: This is for income, not accumulation.
Perfect for clients who want a “personal pension” with income starting immediately.
Funding: One-time lump sum (e.g., from 401(k), pension, or savings).
Payout Start: Begins within 30 days to 1 year of purchase.
Income Duration:
Life Only (income as long as you live)
Period Certain (e.g., 10 or 20 years)
Joint Life (covers spouse too)
No Growth Phase: This is for income, not accumulation.
Perfect for clients who want a “personal pension” with income starting immediately.
Deferred Annuity (Grow Now, Withdraw Later)
Deferred Annuity (Grow Now, Withdraw Later)
Best for: Clients still building retirement savings who want tax-deferred growth.
Accumulation Phase: Your money grows (fixed or indexed) over time.
Deferral Period: You delay income for 5–20+ years.
Payout Phase: You choose when to turn the value into guaranteed income.
Bonus Potential: May include interest or premium bonuses to boost growth.
Designed for clients who want to build value now and lock in income later.
Accumulation Phase: Your money grows (fixed or indexed) over time.
Deferral Period: You delay income for 5–20+ years.
Payout Phase: You choose when to turn the value into guaranteed income.
Bonus Potential: May include interest or premium bonuses to boost growth.
Designed for clients who want to build value now and lock in income later.
Lifetime Income Riders (Optional Add-On)
Lifetime Income Riders (Optional Add-On)
Best for: People who fear outliving their money.
Benefit: Ensures you receive income for life—even if the annuity balance hits zero.
Income Base: Typically grows annually (e.g., 6–7%) until you start taking income.
Can Be Added To: Fixed or indexed annuities.
Cost: Usually an annual fee (0.5%–1.2%), but often worth it for guaranteed income.
Great for building a “retirement paycheck” that never runs out.
Benefit: Ensures you receive income for life—even if the annuity balance hits zero.
Income Base: Typically grows annually (e.g., 6–7%) until you start taking income.
Can Be Added To: Fixed or indexed annuities.
Cost: Usually an annual fee (0.5%–1.2%), but often worth it for guaranteed income.
Great for building a “retirement paycheck” that never runs out.
❓ Frequently Asked Questions – Annuities
❓ Frequently Asked Questions – Annuities
1. Are annuities safe?Yes. Fixed and indexed annuities are backed by top-rated insurance carriers and are not directly invested in the stock market.
2. What’s the difference between a fixed and indexed annuity?Fixed offers a guaranteed interest rate. Indexed grows based on market performance—with built-in protection from losses.
3. When can I start getting income?With an immediate annuity: right away. With a deferred annuity: later, when you choose to start withdrawals (often during retirement).
4. Can I lose money in an annuity?Not with fixed or indexed annuities. They offer principal protection. Variable annuities (which we don’t focus on) do carry market risk.
5. Is an annuity better than a 401(k) or IRA?They can complement each other. Annuities provide guaranteed income, while 401(k)s and IRAs depend on market performance.
6. Are annuities taxed?Your money grows tax-deferred, and you only pay taxes when you start taking income (on the earnings portion).
2. What’s the difference between a fixed and indexed annuity?Fixed offers a guaranteed interest rate. Indexed grows based on market performance—with built-in protection from losses.
3. When can I start getting income?With an immediate annuity: right away. With a deferred annuity: later, when you choose to start withdrawals (often during retirement).
4. Can I lose money in an annuity?Not with fixed or indexed annuities. They offer principal protection. Variable annuities (which we don’t focus on) do carry market risk.
5. Is an annuity better than a 401(k) or IRA?They can complement each other. Annuities provide guaranteed income, while 401(k)s and IRAs depend on market performance.
6. Are annuities taxed?Your money grows tax-deferred, and you only pay taxes when you start taking income (on the earnings portion).
⭐ Client Story: “It Pays Me Every Month—No Matter What.”
⭐ Client Story: “It Pays Me Every Month—No Matter What.”
"I was nervous about retirement. My 401(k) was up and down with the market, and I needed something more reliable. Dylan helped me roll over part of my retirement savings into a fixed indexed annuity. Now I get a monthly check I can count on—for the rest of my life. It’s like a personal pension, and it gives me real peace of mind."
"I was nervous about retirement. My 401(k) was up and down with the market, and I needed something more reliable. Dylan helped me roll over part of my retirement savings into a fixed indexed annuity. Now I get a monthly check I can count on—for the rest of my life. It’s like a personal pension, and it gives me real peace of mind."
– Ronald P., Denver, CO
– Ronald P., Denver, CO
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