Investing in Annuity.

An annuity is an investment that can help minimize the risk of an income stream involved with retirement planning. Annuities are a financial instruments issued by an insurance company designed to accumulate assets during the life of the contract which can later provide a retirement income stream. Depending on the annuity type, it may offer regular payments for the rest of your life or payments set for 20 years term. There are several types of annuities available to meet the financial needs of each individual investor.

what is Immediate annuity ?

Immediate annuity begin providing an income immediately upon making an initial investment normally after 30 days period. The payment distribution can be over a specified time period, the remainder of your life or your beneficiary’s life or a combination of the two. The lifetime income option makes immediate annuities an attractive choice for retirees who need to extend their savings over their lifetime.

what is Deferred income ?

Deferred annuities do not provide income immediately but rather at some future date. While some retirees use these types of annuities to supplement their income past a certain age, they are most often purchased prior to retirement age. Deferred annuities can be purchased in either a single lump sum or through multiple payments. The funds accrue, taxed-deferred, until the time of disbursement. Most delayed annuities allow withdrawals of up to 10 percent annually commencing 30 days from purchase date.

what is Fixed Annuity ?

provide a guaranteed rate of return and safeguard the initial deposit principle. The annuity will continue to accrue interest at the same rate as long as you and the beneficiary retain ownership. Returns on fixed annuities are typically lower than Index Annuity but are not subject to the volatility of stock and bond markets. They offer a safe investment vehicle for the risk adverse retiree.

what is Variable Annuities ?

have the potential for higher returns than fixed annuities since they are tied to a variety of investments of your choice. These variable annuities enable you to choose from conservative investments such as money market and government bond funds or more aggressive small to large cap funds. However, variable annuities are also subject to unpredictable market behavior which may result in the losses of your principal money. These annuities are usually deferred and most often preferred by pre-retirement investors who seek to aggressively build wealth.

what is Index Annuities ?

The performance of an indexed annuity relies on a market index such as:

  1. S&P 500
  2. Dow Jones Industrial
  3. NASDAQ.

Therefore, they have greater growth potential than fixed annuities whenever the market prices are increasing. Although there is usually a cap on the maximum return, index annuities also guarantee a minimum return to protect against market losses.

Are you shopping for an Annuity rate ?

Annuities offer a great deal of flexibility for both retirees and pre-retiree investors. Furthermore, it include additional features such as as guaranteed minimum income benefits, death benefits and nursing home confinement.

There are many options available to you to facilitate successful financial planning. For more details or need a free Annuity Illustration, feel free to call G. Zein Insurance Services now at (866) 455-9555 or (954) 454-9599. We are here to answer all your questions.