What is your S.T.Y.L.E. of annuity?

What is your S.T.Y.L.E. of annuity?

Each person has a unique Style, houses have different Styles, and investments have various Styles.  Unfortunately we are unable to design a single individual financial product to meet our personally unique investment Style.  Fortunately the life insurance industry has developed various types of Annuities and no financial product today has the S.T.Y.L.E. of an Annuity.

Safety: In the financial industry annuities are synonymous with safety.  You can never lose money in a fixed annuity.  Fixed annuities have guaranteed crediting rates that assure that you always earn interest, even in periods of negative earnings in the stock and bond markets.  Annuities are offered by life insurance companies and thus are regulated by state law and are backed by the financial strength of the issuing company.  All insurance companies which offer annuities must legally maintain sufficient reserves to pay all guarantees in every issued annuity contract.  This means that regardless of an insurance company’s investment portfolio performance the insurance company must keep in reserve the funds necessary to pay your guaranteed interest rates.  All insurance companies which offer annuities are also monitored by third party rating agencies such as A.M. Best, Moody’s, and Standard & Poor’s.

Tax Deferral: You do not have to pay any taxes on the interest you earn in your annuity until you withdrawal those funds.  In the insurance industry, Tax Deferral is also known as The Power of Three because this allows your investment will to grow in three ways: interest earned on principal, interest earned on compounded interest, and interest earned on funds which you did not have to pay any taxes on.  Tax Deferral allows you to choose the time when it is best for you to withdrawal funds pay taxes on your earned interest.

Yield:  The primary purpose of many investments is to earn the greatest Yield possible on your investment, while maintaining a safe investment.  A secondary purpose of many investments is to obtain favorable tax treatment and the “T” in our S.T.Y.L.E. protects you there.  Annuities have consistently provided yields that are 1-2% higher than rates typically obtained via CDs and many Money Market Accounts.  Considerably higher interest yields combined with tax deferral allow you to maximize your return on your investment.

Liquidity: As important as it is to ensure that your investment is Safe, enjoys the fruits of Tax Deferral, and earns the highest possible Yield, it is equally important that you have access to your accumulated funds.  Annuities provide you with liquidity via penalty-free withdrawals, annuitization, and living benefits for nursing home care and terminal illness.  It’s not only what you earn but the ability to access your fund that counts..

Estate Planning: Upon your passing your annuity will allow for an immediate transfer of benefits to your designated beneficiary.  Unlike many investments, annuities are not subject to probate, transaction fees, and timely transfer delays.  Once your annuity has been transferred to your beneficiary(ies), your beneficiary may choose whether to continue the investment, liquidate the account via a lump sum payment, or annuitize the account via payments over a specified period of time.  Annuities also allow for your estate to avoid taxes by designating a beneficiary who is outside of your estate.

There is no investment tool in the market today with the S.T.Y.L.E. of an annuity.  In order to obtain additional information please contact us.