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Call anytime for the most
competitive
annuity
interest
rates.
The goal of any
retirement plan is to save enough money to live comfortably for the rest of your
life.
Annuities have many
advantages to help you achieve this goal. There are two basic kinds of
annuities. Deferred Annuities are for accumulating money. Immediate
Annuities provide income for a certain period or lifetime or a lifetime with a
period certain for your beneficiary.
●
fixed deferred
annuities
offer the following features
and advantages:
■ Tax-Deferred Growth
■ Guarantee of Principal and
Interest
■ Proceeds at Death Avoid
Probate
■ No Required Minimum
Distribution Unless it is IRA Money
■ No Up-Front or Annual Fees
■ Early Surrender Charges May
Apply
■ Can Be Converted to an Income
Annuity Without a Fee
●
Indexed deferred
annuities
have
many of these advantages but allow you to invest in indices such as the S&P 500
or the NASDAQ index. Indexed annuities have a growth cap and usually have
a guaranteed minimum annual growth rate of 1% to 3%.
●
Variable Deferred
Annuities
allow
you to invest in mutual funds and various other
investments. Fees are charged to your account, and you have no guarantees
unless you put your funds into the fixed account. I do not sell variable
annuities. I do not want to expose my clients to risk.
●
Immediate Annuities
are the only financial
product available that can guarantee you lifetime income. One of the
biggest concerns today is that we will outlive our money. Immediate
annuities also spread your taxable gain over the withdrawal period.
Therefore, your income will be higher than taking money out of an IRA, for
example. Annuities can be used in IRAs and 401(k)s, but then IRA and 401(k)
tax rules apply.
Remember, if you own Deferred
Annuities, it is your responsibility to watch your contract
interest rate to make sure that you are getting the best interest rate
available.
Many deferred annuities are renewed at low rates. You can probably move that
money after your surrender charge period and earn much more. This can be
done without paying taxes on your accumulated gain.
When it is time to move money
from the stock market to a guaranteed account, you should consider Annuities.
What is the maximum percentage of investments that you should have in the stock
market? Some suggest that you should subtract your age from 100, although zero risk may turn
out to be better for you.
IRA Required Minimum
Distribution (RMD)
“ALTERNATIVES”
From age 70 ½ on you are
required
make an annual
withdrawal from Traditional IRA account(s). The amount of your required
withdrawal is determined by a preset IRS formula and the amount increases every
year. It
is your responsibility to make the required withdrawal every year
and if you do not, a
penalty will be assessed equaling 50% of the
amount you were required to withdrawal.
If you
would like a free print out of your Required Minimum Distribution
amount for the next 20 years
starting at age 70 ½, please call or email me.
You can eliminate the Required Minimum Distribution
obligations by converting your IRA into a Tax Qualified Immediate Annuity that
will pay you a guaranteed income for the rest of your life. Or you can
eliminate RMD penalties on a portion of your IRA account by annuitizing a
portion of your IRA account. Please call or email me for a free Annuity Income
quote.
Many people have
accumulated enough money in pension, 401(k) and other accounts that they do not
need money from their IRA account for income and prefer to leave their
IRA money to their children. This can be done by leveraging their IRA
value into a substantially higher value and leaving the higher value to their
children INCOME TAX FREE. If this “state-of-the-art” estate planning
solution sounds interesting to you, please call or email me for more information.
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I never charge a fee.
For more information, to get
a quote, or to set an appointment, call
518-286-1212 or
send an email to
info@DavidKingSolutions.com. |
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