The Primary Reasons People Buy Annuities

Safety of Principal! - Most people have worked hard all their life accumulating their "nest-egg". They should not put their money in risky investments, especially our senior citizens. Most seniors are more concerned about the "return OF their money than the return ON their money".

Annuities are considered to be safe investments for the following reasons:

• No market risk
• Backed by the financial strength of large life insurance companies who are required to set aside a portion of their assets (reserves) to cover claims.
• They also spread their risk through the industry’s reinsurance network, i.e. several companies share in a particular risk.

Tax Deferral - Taxes are paid only when money is received. IRC Section 72This results in a much faster cash build-up. Your principal grows because you receive: 1) interest on the principal; 2) interest on the interest; 3) interest on the money that normally would have been paid in taxes.

Competitive Interest Rates - At present, and historically, annuities outperform CD’s and money market accounts.

Accessibility- One of the biggest concerns, especially with seniors, is "Do I Have Access to My Money, Should I Need It?" There are a number of choices:

Retirement Income Estimator

• Withdraw interest as needed, monthly, quarterly, etc.
• Exercise free withdrawal privilege
• Total surrender
• Annuitize (choose one of a number of income options)

Avoids Probate - By naming a beneficiary, your annuity account is paid directly to a named individual, making it accessible and eliminating probate costs.

Interest Rate Guarantees - Almost all annuity contracts have minimum rate guarantees...the rate can never go below a specified amount.

Current Income Reduction - CD’s, money market accounts, savings accounts, etc. require current taxation of interest earned even if it is not taken. Annuities are taxed only upon receipt of interest.

Lifetime Income Option - Annuities are the only investment vehicles available that guarantee you cannot outlive your monthly payments

Avoid Risk and invest in a tax deferred annuity! Your PRINCIPLE & INTEREST  is FULLY GUARANTEED at all times!!

You get:

• Triple Compounding
• Tax Savings
• No Fees or Load Charges
• Competitive Interest
• Probate Avoidance
• No Market Risk
• Does not affect taxation of your social security
• Liquidity (Ability to withdraw funds)Source

Allianz Index Annuity Brochure

Safety of Annuities

Brsan.com

2 page summary that comes with the policy

California Insurance Guarantee Association
 

 Annuity.com

Tools - Education

IRS 8 Page Flyer on Biz Retirement Plans

Seniors Annuity Buyer's Guide - CA Dept of Insurance 3/2009

Glossary - Annuity Advisors

 Requirements for Replacement of Life Insurance - Annuity Policies 10509-10509.9
Article 6.  Misrepresentation of Policies ....................... 780-784
      Article 6.3.  Senior Insurance ............................... 785-789.10
      Article 6.5.  Unfair Practices ............................... 790-790.15
 

Frequently Asked Questions

IRS Publication on Retirement Options for Small Business  # 3998

If you ever worked for a company or put money into a plan, but do not remember where it is, etc. try these ideas to locate your missing retirement funds.

Requirements for Replacement of Life Insurance
                  and Annuity Policies .......................... 10509-10509.9

 Standard Nonforfeiture Law for Individual
                    Deferred Annuities ......................... 10168-10168.93

 Misrepresentation of Policies ....................... 780-784
      Senior Insurance ............................... 785-789.10
      Unfair Practices ............................... 790-790.15

General Provisions ........................... 10110-10127.18