JIM POSEY INSURANCE SERVICES, LLC
FIXED ANNUITIES

An annuity is a contract with an insurance company that allows the annuity holder to save for retirement; it is also a way to guarantee income payments for life.

HOW A FIXED ANNUITY WORKS

BENEFITS AND ADVANTAGES


An annuity is a contract with an insurance company that allows the annuity holder to save for retirement.

The money inside the annuity grows tax deferred, which means the interest earned on annuities is not taxable until funds are withdrawn.

After an accumulation period (when you put money into your annuity), you begin the payout phase. You determine how long these two phases last.

The accumulation phase can range from months to years. The payout phase allows you to structure your payments either as a lump sum, or as a series of payments over a period of years, depending on your needs.
Guaranteed principal. Policies that offer this feature promise the company will return 100% of your original premium payment (principal).

Guaranteed interest rates that are fixed by the insurance company for a set period of time.

Tax advantages. Under current federal tax law, annuities allow for tax-deferred growth, along with tax-advantaged payout on annuitization.

Many have no front-end loads or charges.

Most companies allow a certain amount of penalty-free withdrawals each year.

Income for life. Annuities can guarantee a stream of payments that cannot be outlived by the annuitant.

No limits on contributions. Non-qualified annuities are not subject to the same rules limiting annual contribution amounts to IRAs and qualified plans.

If you are looking for an excellent retirement planning tool that affords you tax benefits, flexibility, and safety, a fixed annuity is likely to suit your needs and objectives.

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