Let’s discuss the two major types of Retirement Annuities and some of their variations. Variable Annuities A variable annuity puts some or all of its cash value in the stock and/or bond market.  The owner of the annuity assumes the risk of market fluctuations and it is possible for the markets to go up and […]

Knowing how annuities work helps us understand when and how to use them.  As discussed in “Types of Retirement Annuities”, annuities are not all the same. Annuities accumulate cash and payout retirement income benefits.  Each function has a different structure and that structure must be aligned with the underlying investment portfolio.  Knowledge of how annuities […]

Multi Year Guarantee Annuities (MYGA) – What are they? A Multi Year Guarantee Annuity (MYGA) is a fixed interest tax deferred annuity that has a guaranteed return that stretches over several years.  MYGA’s are normally issued with maturities ranging from three to ten years.  The return on a MYGA is most often guaranteed for the […]

Hybrid Annuity is a common term for equity indexed annuities which are combined with a guaranteed lifetime withdrawal benefit (GLWB) rider.  Since hybrid annuities in effect serve two master, it is important to examine hybrid annuities pros cons. The base indexed annuity offers limited participation in stock market returns, which over the long term can […]

No two retirees are alike.  People vary in: age, life expectancy, health, income, savings amount, duration of employment, retirement age, social security income, employer sponsored retirement benefits, spouses age, spousal longevity and health, retirement income needs, retirement account balances and other factors.  That is why retirement annuities are issued with a broad range of features […]

We are often asked Are Annuities Safe concerning the safety of funds deposited with annuity insurance carriers in the form of premiums. Annuities are one of the safest places to put your retirement savings.  Insurance carriers have been a major component of America’s financial infrastructure for over two hundred years.  Collectively they hold trillions of dollars […]

Finding the Best Single Premium Immediate Annuity Rates can be a difficult and confusing process. Immediate annuities and their modified versions hidden in GLWB riders are the only financial tools that guarantee an income that cannot be out lived.  Technically, these are called life only annuities.  However, a life only annuity is only one option […]

A qualified annuity is an annuity that is purchased inside tax of a qualified plan.  The IRS has issued tax guidelines for a number of ‘qualified’ accounts, which have the following taxation benefits. Tax advantages: Tax deduction for contributions to the account Earnings from savings and investments sources accumulate and compound tax free Distributions are […]

Tax deferred annuities have four separate ways of being taxed. Accumulations Interest earning inside an annuity has no current income tax liability.  This feature makes tax deferred annuities an excellent choice for long term retirement accumulation. Distributions Whenever a distribution is made from an annuity, it is assumed to be interest first and therefore taxed […]

Finding the highest paying annuity is easy, simply ask a local Annuity Coach. At Annuity Coaches we have special search software at our disposal that can go deep into industry information databases and screen for any conceivable policy benefit or rate type. However, that search will only provide you with potential match candidates. A rate search […]

There are several ways to judge an annuity company: financial stability product quality performance history expected future performance Each of the above considerations is an important component in selecting the best annuity companies.  Unfortunately, it is almost impossible to find an annuity with a perfect score.  There is often a conflict between performance and financial […]

One of the most common questions we get is What is a Variable Annuity? The answer is simple. A variable annuity is a tax deferred annuity that uses securities as the accumulation source.  Variable annuities are part insurance and part security and are sold by special dually licensed agents. Variable annuities are securities because the […]

Most consumers and many advisers don’t know that there is a secondary market in annuities.  You sometimes buy a used car; well you can also buy a used annuity known as a Structured Settlement Annuity. A secondary market annuity is one that was purchased in the past and is currently paying out its benefits to […]

A Guaranteed Lifetime Withdrawal Benefit Rider (GLWB) is a rider that guarantees lifetime income for the annuitant at specified ages. The lifetime income is most often designated as factor that when multiplied by an account value, yields the lifetime benefit amount.   For example: a lifetime benefit factor of 5.5% and an account balance of $100,000 […]

Wealth Transfer is often overlooked in many retirement plans.Wealth Transfer is often overlooked in many retirement plans and this is unfortunate because how to leave more money to your heirs is a very important aspect of your overall plan.   The first obligation of retirement resources is of course adequate funding of retirement income needs.  However, […]

To answer the question “What is an Annuity”: an annuity is an insurance product that protects you from outliving your income sources. Immediate Annuities In exchange for a single payment, an immediate annuity promises to pay a stated income amount for the rest of your live.  The income will continue even if you turn out […]