Annuity Straight Talk » types of annuities

Fixed Indexed Annuity

Nathaniel — Thu, 14 May 2009 07:43:29 +0000

The Fixed indexed annuity is a booming business. It’s estimated trillions of dollars are being converted into these annuities.

Fixed indexed annuities garner higher returns than a CD or money market account without giving up security. The Fixed Indexed Annuity is a fixed hybrid product, and is quickly overshadowing CD’s, mutual funds and other stocks as the new safe place for people to invest their money.

How The Fixed Indexed Annuity Works

A fixed index annuity will provide at least 1-3% returns, compounded annually. This minimum guarantee lasts throughout the contract; however, earnings can exceed this rate.

Fixed indexed annuities are linked to the performance of another equity index like the S&P 500. The overall performance of the US stock market is represented by the S&P 500. If the market performs well, your investment will enjoy a percentage of the gains. If and when the market goes down however, you are sheltered from losses.

Fixed Indexed Annuities: Gains, But Not Losses?

Fixed index annuities sound too good to be true. Well, they are real. When the market performs well, you earn a percentage of the gains subject to a cap. When the market goes down, you do not hold any of the risk and therefore do not lose any money. Every year, any earnings will be locked in at the anniversary index point. In fact, on particularly good years, a fixed index annuity can gain 2 or even 3 times the guaranteed interest rate and not lose any of those gains when the market subsides again.

Fixed Indexed Annuity: Tax Deferred Growth

The icing on the cake for fixed index annuities is that if all earnings are kept in the annuity they will grow tax deferred. You don;t even have to file a 1099 on on Fixed indexed annuities.

While this product is for all ages, it is especially applicable to retirees. Small business owners are using FIAs in their 401(k) and SEP-IRA retirement plans as well.

Learn more about this on the The Annuity Report.

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Trust, But Verify

Nathaniel — Wed, 31 Dec 2008 16:23:40 +0000

When shopping annuity companies, we take a slightly different approach to Ronald Reagan’s motto. We believe investors must be critical and learn how to Verify, before Trusting.

There are very few people you can trust with your retirement savings when considering annuities, and it only makes sense to learn a few things first. Certainly, don’t trust annuity companies or annuity sales people.

Be critical of financial products, and learn to trust yourself. By educating yourself, you can make the best decisions for YOU- and you can learn how to screen all the other competing interests. Only then will you be a Smart Buyer and be ready to make an informed decision.

“Trust, but Verify” is great mantra for any confident person, and we give you the tools to Verify what you read and hear about Annuities. Annuities, and the advisors who recommend them, must Verify against your knowledge and tools. Only then do these people and products earn your Trust.
Become a Smart Buyer- Empower yourself to Verify before you Trust.

So how do you do that? It’s pretty easy.

Step #1 is to sign up for our Free Guaranteed Lifetime Withdrawal Benefit report. This free report is available to help you understand these popular products, and you may be surprised to learn some of their pitfalls. Simply fill in your name and email and we’ll send it to you right away.

Step #2 is to become a member of Annuity Straight Talk- membership is free and The Annuity Report is available to our members. This report outlines in detail the decision process and critical factors necessary in buying an Annuity.

Step #3 is a strategy session, available to our members. These simple questions help us see if an Annuity is right for you, and help us to design an Annuity solution for your needs.

When you have the tools to make an informed decision, allow us to recommend annuities that meet your specific needs. You will find our recommended products and companies come with the best combination of Safety, Flexibility, and Profitability for your situation.

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Free Withdrawals

Nathaniel — Sat, 27 Dec 2008 08:40:17 +0000

The Free Withdrawal from your Annuity is a critical Decision Tool that any Annuity buyer must carefully consider. Every annuity contract contains a clause allowing the free withdrawal of a certain percentage of the initial premium each year without a surrender charge. Individual states have laws that dictate a minimum percentage. Typically, the amount of free withdrawal is around 10% and some annuities allow for a 15% free withdrawal. On the flip side, there are products that limit the withdrawal to 5%. High Quality companies offer more than the state mandated minimum. Like most of the factors we discuss, this fundamental integrity and respect for customers permeates their contracts and earns your trust and your business. Conversely, many annuity agents and companies will use bonus rates and higher minimum guaranteed yields to entice you into lower minimum withdrawal allowances. Is this in YOUR best interest? Remember the Ground Rules ! It should go without saying that the bigger free withdrawals are good for the customer and the smaller ones are good for the insurance company. Which would you choose? Action Items:

	If liquidity and control of your capital is important, be sure that your free withdrawals are as large as possible
	Quality companies are not afraid of you withdrawing your money, and consequently don’t sink to the lowest levels allowed by law for your withdrawal allowance.
	Remember, it’s YOUR money.

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