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Annuities

An annuity is a contract between you and your insurance company. There are two phases of an annuity contract: the accumulation phase and the payout phase. In the accumulation phase, the insurance company either pays a fixed rate of interest for a specified period or credits your account value based on the performance of your investment allocations. In the payout phase, you may receive regular payments.

Income on annuities isn’t taxed until withdrawn from the contract, making annuities a good tool to help you save for retirement. Different types of annuities come with different levels of risk and reward. I can assist you in finding the best annuity to help you achieve your retirement savings goals.

  • Variable Annuities*
    This annuity works in much the same way as a fixed annuity, but can offer greater flexibility. You choose how your money is allocated into variable subaccounts, which invest in stock, bond or money market mutual funds, or a combination of these funds. Here, the rate of return varies based on the performance of the underlying funds. With variable annuities, potential risks are higher than with a fixed annuity but the potential returns are also greater.
  • Fixed Annuities*
    This type of annuity provides a guaranteed interest rate for a fixed period of time. Here’s how it works: You give an initial purchase payment to an insurance company, and they agree to pay you a guaranteed interest rate for a specified period. The interest rate paid by the insurance company may be periodically adjusted up or down, but it’ll never go below the guaranteed rate. As a result, you’ll always receive a guaranteed interest rate.
  • Other Types of Annuities*
    Additional fixed and variable annuity products—immediate, indexed and market value-adjusted annuities—are also available. Immediate annuities are designed to provide income payments within one year. Indexed annuities offer the growth potential of a variable annuity with less risk. Market value-adjusted annuities allow you to allocate your money over different guarantee periods and rates of interest. Each annuity product may also have other features, benefits and costs associated with them.