Annuity Services

EQUITY INDEXED ANNUITIES

There are several names for these types of annuities. You may have heard fixed equity indexed annuities or fixed equity annuities. The proper term is Equity Indexed Annuities. They are very unique because you will only make money when the market is up and never lose a dollar when the market is down. Let's give you an example. Since the last crash in September, 2008, the market has relatively been up. When the S&P 500 crashed over a short period of time, the market slid almost 40%?  Most investors were worried about their nest egg. If you had $100,000 in the market, it very well could have been $60,000 based on a typical portfolio mix.

If you had an Equity Indexed Annuity, your money would be tied to an "Index" or several index choices like the S&P 500 or the NASDAQ. If by the end of your contract year, assuming your contract year ended toward the end of 2008 and you had $100,000 in this annuity, you would have lost ZERO dollars! It's hard to believe, but its true. We want you to fully understand the pros and the challenges of your investment.

We work with mostly A-rated companies to get you the safety you are looking for. Annuities are not FDIC insured, but all states, including Florida have a state guaranty for protection. Ask us for details.

We also offer fixed annuities over a 3-10 year period. These rates will never go down and are much more competetive than your CD rates or money market/savings rates.

*An annuity is a contract between you and an insurance company that is designed to meet retirement and other long-range goals, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date. Annuities typically offer tax-deferred growth of earnings and may include a death benefit that will pay your beneficiary a specified minimum amount, such as your total purchase payments. While tax is deferred on earnings growth, when withdrawals are taken from the annuity, gains are taxed at ordinary income rates, and not capital gains rates. If you withdraw your money early from an annuity, you may pay substantial surrender charges to the insurance company, as well as tax penalties. Guarantees are based on the claims paying ability of the insurance company. In an indexed annuity, the insurance company credits you with a return that is based on changes in an index, such as the S&P 500 Composite Stock Price Index. Indexed annuity contracts also provide that the contract value will be no less than a specified minimum, regardless of index performance. As each individual’s tax situation is different, take time to consider all the facts and consult with your tax advisor before initiating an annuity. Distributions received before age 59 1/2 are subject to an early distribution penalty of 10% additional tax unless an exception applies. This information is not intended to be a substitute for specific individualized tax, legal or estate planning advice.

** Income riders are attached to the initial investment with the insurance company for a fee. The fee is withdrawn from your actual account value, but could be assessed from your income value. It is very important to understand all features and benefits before you purchase any annuity. All actual account values are guaranteed by the insurers to never lose principal and share in the gains of the market and never incur losses in a down market as well. These products offer very specific needs and to be very clear, you are not vested in the stock market. These annuities are considered fixed products with a hedge against inflation and market volatility.