Like many
people, you probably put your money in a variety of different
financial products for a variety of reasons. Some give you tax
advantages, others provide safety, or liquidity, or a competitive
rate of return.
One product can give you all of these features at once.....an Annuity!!!
Consider these advantages of an Annuity:
Privacy
 | Interest earnings are legally not reported on Federal and State Income Tax returns |
| Fewer people in your community will have knowledge of your account |
Bypass Probate (Eliminate the Cost & Delays)
| Your dollars will transfer immediately to your chosen beneficiary |
| You will avoid legal fees, court costs and considerable time delays |
Incontestability
| Unlike a will, no one may contest your decision as to who will receive your dollars at the time of your death |
No current Federal or State Income Tax (Tax-Deferred Growth)
Tax Deferral puts you in control when you pay taxes on your money. You do not receive a 1099 on your earnings until you take the money out and then you only pay taxes on the earnings that you take.
| Earn interest on your principal |
| Earn interest on your interest |
| Earn interest on those dollars you would have normally paid to the Federal and State Government |
| Why pay tax on interest income unnecessarily? |
Diversification
| America's leading financial experts suggest that we do not put all our eggs in one basket |
Accessibility to your dollars
| Free withdrawals at any time based on policy contract |
| Ability to create a fixed monthly income you cannot outlive |
| Even CD's have a new penalty each time you renew it. Except during the 10 day free withdrawal period at the end of your CD time duration |
No Market Risk
| Unlike stocks, bonds, mutual funds, limited partnerships and municipals that can fluctuate daily and put your principal at risks, fixed annuities offer guarantee of principal and an interest rate guarantee for life |
Guaranteed interest rate
| You will never earn less than the rate guaranteed by your fixed annuity |
Two Types of Annuities:
| Immediate Annuities- are single-premium contracts which begin paying installments immediately, or within one year of deposit. The payments can start and be given to you in many ways, even for the rest of your life! |
|
Deferred Annuities-When you buy an annuity, you
make a payment, or a series of payments to an insurance
company. In return for these payments, the company will
pay you tax-deferred interest, which is your
legal right to choose when, if ever, during your lifetime
to pay Income Tax on Interest Income, and
guarantee you a regular income, beginning when you want,
for any time period you want -a lump sum- or even for
life. Deferred Annuities can offer safety of principle,
flexibility, competitive interest rates and strong
guarantees. |
What is tax-deferred growth?
Many people are choosing tax deferred annuities as one of the "cornerstones of their overall financial plan." Why? Traditional savings dollars generate taxable interest every year. By postponing the tax with a tax deferred annuity, your money compounds faster because you earn interest on dollars that otherwise would have been paid to the IRS. Later, if you decide to take these extra dollars as a monthly income spread over a period of years, your taxes could be less. As a result of the tax deferred growth under current laws, distributions made before age 59 1/2 may be subject to an IRS penalty.
The
above information should not be considered tax advice. Please consult a
tax consultant for your particular situation.
Registered Representative of and securities offered Through SICOR Securities, Inc.
Member FINRA, SIPC, MSRB
Home Office Address: 6500 Poe Ave. Suite 105, Dayton, OH 45414 (937) 890-3101
Lifetime Decisions Management, Inc. is not a subsidiary of nor controlled by SICOR Securities, Inc.