Annuities
Traditional Role: Providing Tax-Deferred Growth
For those with high marginal tax rates, deferred annuities have always been a valuable tool in providing additional access to tax-deferred investing once other retirement planning options (employer-based plans and IRAs) have been exhausted.
Distributions (and certain deemed distributions) from a tax-deferred account or retirement plan, may be subject to ordinary income tax and if taken prior to age 59 1/2, may also be subject to a 10% federal income tax penalty. Early surrenders charges may also apply.
Advanced Role: A Sophisticated Planning Tool
Annuities continue to provide valuable tax-deferral benefits. Additionally, they have evolved to become a more efficient investment vehicle with attractive investment management features. In the last ten years, valuable insurance features called “living benefits” have become available.
Along with the value of these products offerings comes a level of complexity that needs to be understood for thoughtful integration into personal financial planning. Our insurance and investment specialists work with our financial planning team to help ensure that product details are appropriately matched to each client’s unique financial situation.
Annuities are long-term investment products, designed for retirement. Any interest, dividends or capital gains accumulate tax deferred. Liquidated earnings are subject to ordinary income tax and if made prior to age 59 1/2 may be subject to a 10% federal income tax penalty. Early surrender charges may also apply. Fixed annuitites accumulate earnings based on a fixed rate of return during the annuitization (payout) phase. Variable annuities allows you to allocate your payments and account values among a variety of equity-oriented investment options. Variable annuities are sold by prospectus.
Before purchasing a variable annuity product, investors should carefully consider the investment objectives, risk charges and expenses of the annuity and its underlying investment choices. For this and other information, obtain a product prospectus and underlying fund prospectus from your registered representative.
We Work With The Following Companies
In purchasing a product from an insurance company you are relying on the ability of the insurance company to deliver on its guarantee. If our clients are considering an annuity for any of its guarantee features, we insist they limit the playing field to those companies with well-diversified operations and strong balance sheets. We work exclusively with the following annuity providers: