A fixed annuity is an insurance product that offers a fixed interest rate, not unlike a CD, and is guaranteed by an insurance company for a specified period of time called a, “guarantee period”. With this form of retirement savings, the principal paid to the insurance company accumulates on a tax-deferred basis and the insurance company guarantees the return of your principal investment.
Advantages of a Fixed Annuity:
- Tax Deferred Accumulation
- Guaranteed Return of Principle
- Guaranteed Interest Rate
- Choice of Guaranteed Period
- Not subject to Stock or Bond market Fluctuations
- No Fees
An equity-indexed annuity is an alternative investment to a traditional fixed rate or variable rate annuity, and it may be appealing to moderately conservative investors. Equity-indexed annuities are distinguished by the interest yield return being partially based on an equities index, such as the S&P 500 index.
Advantages of a Indexed Annuity:
- Safety
- Double Digit Gains Potential
- Guaranteed Returns
- Tax Deferred Growth
- Avoids Probate
- No Surrender Charges at Death
A variable annuity is a long-term insurance product that enables the premium paid to be the insurance company to accumulate tax-deferred with a variable rate of return. Within the annuity, there is a choice of investment options (called "sub-accounts") that will allow for management of investment choices over time.
The sub-accounts invest in underlying funds that, in turn, invest in various types of securities (ex: stocks, bonds, & money market instruments) each with a different risk/return profile. The return on your annuity will depend on the performance of the investment.
Advantages of a Variable Annuity:
- Tax Deferred Accumulation
- Ability to Choose Among Investment Strategies
- Potential for Double Digit Gains
Disadvantages of a Variable Annuity:
- Risk Exposure much like Stock Market
- Management Fees
- Fund Charges
- Surrender Charges
- Mortality Charges
- Income Rider Fees
An immediate annuity is an insurance product designed to convert assets into income immediately (typically within 30 days and seldom longer than 12 months from the date of purchase). The consumer pays a premium to the insurance company and the insurance company makes a stream of periodic, income pay-outs to the annuitant.
As is the case with deferred annuities, immediate annuities can either be fixed or variable. Taxable Distributions (and certain deemed distributions) are subject to ordinary income tax. With a fixed, immediate annuity, your periodic pay-out amount will always stay the same. With a variable, immediate annuity, your periodic pay-out amount will fluctuate, based on the performance of the investment options you have chosen within the annuity.
Advantages of a Immediate Annuity:
- Lifetime Income, higher level of Guaranteed Income
- Income Adjustments, for living expenses
- Flexible Payment Terms, custom stuctured pay
Disadvantages of a Immediate Annuity:
- Locked Contract
- Surrender of Principle

The annuity continues to out perform many other competitive investment programs with:

A guarantee that you will never lose the money you invest on fixed programs.
A guarantee that you will have a competitive return every year without losses.

Are Annuities Right For You?

If you are nearing retirement and looking for an alternative that will have a positive affect for your portfolio, the annuity will sound like a no-lose proposition. Today the average American male lives to 80 and female to 84. There may be medical expenses, travel opportunities and more that can burn though you savings. Every prospective retiree should know what anuities can provide and why they should be a legitimate part of your retirement plans.