Every day you make
financial decisions, but when put together into a strategy,
they can change the way you achieve goals in your whole life.
Golden Gates Agency wants to help you plan your future and
help get you there. Identifying your financial goals, and
understanding how much you need to achieve them is just half
the job. Now you have to determine what your best course of
action will be to make sure you stay on track. Are you interested
in putting your plans into motion or reviewing your existing
plans with a professional? We're ready to help.
What is an annuity?
An annuity is an insurance
contract. You make a payment or series of payments, and in
return, the insurance company returns the proceeds in an agreed-upon
schedule.
Only an annuity
can guarantee income for as long as you live.
During the accumulation
period the money you contribute earns interest. Earnings
are tax-deferred as long as they are not withdrawn, and may
provide considerable tax relief on earned interest; verses
stocks, mutual funds, or CDs. An annuity is a very safe vehicle
for funding long-term savings, IRAs and other retirement plans.
During the payout period you
may choose a lump sum, or among a variety of lifetime income
options, including your life only, life with a payment to
a beneficiary for a set number of years, or a joint and survivor
option which also continues through out your beneficiary’s
life time. If you die before the payout period, your contract
value will be paid to your beneficiary.
Single premium:
You pay the insurance
company only one payment.
Flexible premium:
You make a series of
payments. Within set limits, you pay as much as you want, whenever
you want.
Scheduled premium:
The contract spells out your payments and how often you will
make them.
Immediate Annuities:
The income payments start no later than one year after you pay
the premium. Usually the premium is collected in one single
payment.
Deferred Annuities:
The income payments often begin years after the payments are
made. Deferred annuities have an accumulation period, which
is the time between you start paying and when income payments
start.
Fixed annuity:
During the accumulation period, your money earns a fixed interest
rate, which is set by the company. There is also a guaranteed
minimum interest rate, which your rate will not fall below.
Upon payout, the amount of each payment is set, and will never
change.
Equity Indexed
Annuities: Rather than
fixed interest rate, the interest earned is linked to an index
like the Standard & Poor’s 500 Composite Stock Price
Index (S&P 500). The value of the S&P 500 varies from
day to day, as does your interest rate. There is also a guaranteed
minimum interest rate. Upon payout, the amount of each payment
is set, and will never change.
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