Annuities & Insurance
Annuities are a way to aid in your retirement planning. Tax-deferred annuities may help you reach your long-term goals.
Fixed Annuities
Fixed annuities are characterized by a minimum interest rate with a minimum annuity benefit guaranteed by the issuing insurance company. With a fixed annuity, the focus is on safety of the principal and stable investment returns. Annuities are not deposits or obligations of or guaranteed by any bank or financial institution.
Annuities are not insured by the FDIC or any other agency and are subject to investment risk, including the possible loss of principal. Early withdrawals may be subject to surrender charges. Withdrawals prior to age 59 ½ may result in a 10% penalty, in addition to any ordinary income tax. The guarantee of an annuity is backed by the financial strength of the underlying insurance company.
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Primary Reasons People may Buy Fixed Annuities
Safety of principal- Most people have worked hard all their life accumulating their "nest-egg". They may want to consider investing in a conservative mannor. Many people are more concerned about the "return OF their money than the return ON their money". "Fixed" annuities may be considered to be safe investments for the following reasons.
• Fixed annuities other then risk of insurance company failing are not subject to market risk. (Variable annuities are subject to 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.
* Please note that fixed annuities are subject to inflation risk.
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Tax Deferral - Taxes are paid only when money is received. This 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) tax deferral
Accessibility - One of the biggest concerns, may be, is "Do I Have Access to My Money, Should I Need It?" There may be a number of choices:
• Withdraw funds as needed, monthly, quarterly, etc.*
• Exercise the annuity products free withdrawal option if available.*
• Total surrender - may not be best option.*
• Annuitize (choose one of a number of income options)
* may be subject to surrender fees, taxes & penalties.
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 - Many fixed annuity contracts have minimum rate guarantees.
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 upon receipt of interest and upon withdrawals.*
*may be subject to early withdrawal penalties
Lifetime Income Option - Annuities have an annuitization option available that guarantee you cannot outlive your monthly payments.Within a fixed annuity your principal is guaranteed.
• Tax deferral
• The potential for a competitive interest rate for fixed annuities
• Probate Avoidance
• Fixed annuities are not subject to market risk - excluding index annuities
• May not affect taxation of your social security
• Subject to inflation risk
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Life Insurance Products
Life Insurance is a fundamental part of a sound financial plan: we are dedicated to ensuring that your family and loved ones are protected against financial difficulties in the event of an unexpected death. A strategic and solid insurance plan should also be an integral part of any business's comprehensive investment strategy. Whatever your needs are, GunnAllen Financial will help you identify the appropriate insurance to coincide with your long-term goals. GunnAllen Financial has assembled a suite of the most respected names in the industry for you to choose from, and we maintain strategic relationships with quality carriers to stay current with industry trends and place your needs first.
Whole Life Insurance- Provides lifetime insurance protection with a guaranteed cash value, fixed premiums and death benefits.
Universal Life Insurance- Gives the policyholder the ability to change the benefits as well as vary the amount of timing or amount of premium payments.
Term Life Insurance- A life insurance that pays death benefits to the policyholder during a set period of time.
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Long Term Care
With today's medical advances increasing the life expectancy of the average American, likelihood that we will one day need long-term care is also increased.
Whether you would like care in your own home, or at a skilled nursing facility, we can compare plans that protect both you and your pocketbook.
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