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Annuities Information

What is an Annuity?

An annuity is a type of investment issued by life insurance companies. (However, an annuity is not life insurance; it is a place to invest your money for future use.) Payments or deposits(depending on the contract) can be made with one lump sum, or in monthly, quarterly, or annual contributions.

Annuities Offer:

  1. Tax deferred growth
  2. Safety of Principal
  3. Minimum guaranteed return
  4. No Probate; upon death of the annuitant, proceeds go directly to the beneficiary
  5. Lifetime guaranteed income
  6. Protection from creditors. Under Michigan Law, proceeds from an annuity are fully exempt from creditors.
  7. No fees or start up costs; 100% of what you put in draws interest

An annuity is not an IRA, however, they are an excellent investment vehicle to fund your IRA or to roll over an existing IRA account, 401K, or CD.

A strong investment portfolio contains different levels of investment risk. A large portion of the investment mix should contain low-risk investments that do not fluctuate with the stock market and always earn a reasonable rate of return.  The closer we get to retirement, the safer the portfolio should be. As with life insurance, it is important to discuss your needs with a life/annuity professional to help determine what is best for your particular situation.

Annuities VS CD's

 

 Annuities: CD's:                                 
 Interest Accumulates Tax Deferred  Taxes are Due Annually
 Avoids the Probate Process  Is Subject to Probate                                
 Flexible Contributions w/o New Contract  Would Need a New Contract
 10% Withdrawal per year w/o Penalty  Penalty on ANY Early Withdrawals
 Min. Guaranteed Interest Rate  No Minimum Guarantee
 No Maturity Dates to Track  Each CD has its Own Maturity Date
 Guaranteed Lifetime Income  Cannot Guarantee Lifetime Income








  
    Disclaimer: Schwab Insurance Agency is not affiliated with Charles Schwab & Co., Inc. or Charles Schwab Bank N.A.

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    Genesee, Saginaw, and Lapeer County.