Category: Annuities

Annuity Moving Parts Explained

FINRA® Letter What is an equity-indexed annuity? While technically classified as a fixed annuity, an equity-indexed annuity (EIA), also referred to as a fixed-indexed annuity, can be described as a hybrid of a fixed annuity and a variable annuity, having some characteristics of both, and falling in between regarding...
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The Everything Annuity White Paper

Annuities                                                                              FINRA® Letter What is an annuity? The contract between purchaser and insurance company An annuity is a contract between you (the purchaser or...
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Indexed Annuities

If you want to limit potential losses while participating in the potentially attractive returns of a market-driven investment but would also like a guaranteed return, an indexed annuity might be worth checking out. The performance of indexed annuities, also referred to as equity-indexed or fixed-indexed annuities, is tied to...
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Why do people buy annuities?

Annuities are insurance-based financial vehicles that can provide many benefits sought by retirement-minded investors. There are a number of reasons why people buy annuities. Deferral of taxes is a big benefit, and so is the ability to put large sums of money into an annuity — more than is...
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Indexed Annuities 2

An indexed annuity (IA) is a contract between you and an insurance company. You pay premiums in a lump sum or periodically, and the issuer promises* to pay you some amount in the future. The IA issuer also provides a minimum guaranteed* interest rate on your premiums paid. With...
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Getting Help from a Financial Professional

Are you suddenly on your own or forced to assume greater responsibility for your financial future? Unsure about whether you’re on the right track with your savings and investments? Finding yourself with new responsibilities, such as the care of a child or an aging parent? Facing other life events,...
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Common Annuity Riders

An annuity is a contract between you (the purchaser or owner) and the issuer (an insurance company). In its simplest form, you pay money to the annuity issuer, the issuer invests the money for you, and then the issuer pays out the principal and earnings back to you or...
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Immediate vs. Deferred Annuities

Immediate annuities Deferred annuities Payout begins shortly after the premium is paid. Payout begins at some specified future date, allowing time for accumulation. Purchase with a single premium. Purchase with either a single premium or periodic premiums. Contract is usually irrevocable–after you enter into the contract, it can’t be...
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Variable Annuities

Variable annuities are sold by prospectus. You should consider the investment objectives, risk, charges, and expenses as well as the underlying investment options carefully before investing. The prospectus, which contains this and other information about the variable annuity, can be obtained from the insurance company issuing the variable annuity...
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Fixed vs. Variable Annuities

Fixed Annuities Variable Annuities Minimum guaranteed interest paid Yes No1 Minimum death benefit Yes Yes Possibility of losing principal due to fluctuation in investment values No2 Yes Multiple investment options No Yes 1 Unless fixed account option is available and elected 2 Guarantees subject to the claims-paying ability and...
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Annuity Basics

An annuity is a contract between you, the purchaser or owner, and an insurance company, the annuity issuer. In its simplest form, you pay money to an annuity issuer, and the issuer pays out the principal and earnings back to you or a named beneficiary. Life insurance companies first...
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Annuity Distributions

Annuity Distributions What are annuity distributions? The second phase of an annuity contract, called the distribution phase, begins when you start receiving payments from the annuity. These payments are called annuity distributions. Distributions typically consist of principal and earnings. The examples used throughout this discussion are hypothetical. They do...
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What is an annuity?

Answer: An annuity is a contract between you (the purchaser or owner) and an insurance company. In its simplest form, you pay money to an annuity issuer, and the issuer then pays an income stream back to you or to a named beneficiary. Annuities are generally used to provide...
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Deciding When to Retire: When Timing Becomes Critical

Deciding when to retire may not be one decision but a series of decisions and calculations. For example, you’ll need to estimate not only your anticipated expenses, but also what sources of retirement income you’ll have and how long you’ll need your retirement savings to last. You’ll need to...
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Delay your RMD

Should You Delay Your First RMD? Remember, you have the option of delaying your first distribution until April 1 following the calendar year in which you reach age 70½ (or April 1 following the calendar year in which you retire, in some cases). You might delay taking your first...
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