What is an Annuity?
1. These are Insurance policies, not stocks, bonds, mutual funds, etc.
2. There is NO risk to my Principal so every dollar I use is guaranteed not to go down in value
3. Every interest gained is LOCKED IN, so every dollar I earn in a contract year is also guaranteed not to go down in value
4. In exchange for points 2 and 3, I must adhere to contractual language that limits access to my policy values. Limits such as a) maximum annual withdrawal amounts and b) multiple-year (decreasing) surrender charges
5. Also in exchange for points 2 and 3, my interest gains may never be as high, as those realized by stocks, bonds, mutual funds, etc.
6. Every interest gained is a TAX DEFERRED gain
7. Every policy is backed by an A-rated insurance carrier (at time of purchase), according to A.M. Best.
8. Every policy is a Fixed Index Annuity or FIA (also known as Equity Index Annuity or EIA)
FIAs provide two options for guaranteed income.
Shawn listened to our concerns about outliving our money, putting our nest egg at risk, and having options in case of ill health or death. He assessed our situation and offered solutions that were tailor-made for our situation. With the answers he provided, we felt confident that a fixed indexed annuity with a guaranteed income rider was the right place for our pension from a previous employer.
~ Mike & Eileen
