What You Need to Know

 

Annuities come in many different forms. What is the best for your situation?


Are you looking for growth, income, principal protection or some of each?


Types of Annuities
Variable Annuities
Fixed Indexed Annuities
Fixed Annuities

 

Variable Annuities


Can provide upside potential but are also subject to the market downsides and provide tax
deferral.


Pros: Potential high returns, offers a variety of mutual funds, lock-ins might be available


Cons: High Cost. Some as high as 4% a year due to charges by the insurance company and the
mutual fund company.

Fixed Annuities

Fixed Annuities are very similar to certificates of deposit offered by banks. They will pay a certain interest rate and are guaranteed by the insurance company but are not protected by the FDIC.

Pros:

  • Steady returns.

  • Principal and Interest Guaranteed. 

  • Tax deferral.

Cons:

  • Better interest rates become available with rising interest rates.

  • Lower returns over the last decade.

Fixed Indexed Annuities


Best of both worlds. Provides potential upside but has no downside. Does not invest in the directly in the market but the insurance company will credit you with the equivalent of the return on a specific index (i.e. the S&P500).


Pros:

  • Potential high returns.

  • Principal and Growth Guaranteed. Guaranteed not to have a negative year.

  • Tax deferral.

  • Locked-in annual values


Cons:

  • The insurance company reserves the right to change cap and participation rates

  • Long Surrender Periods usually 5-15 year.


Let us help you decide what is best for your situation…. Click here for an appointment.

or talk to them again until the


For most advisors selling Annuities, it is “one and done.” Meaning you will probably never see


Why we are different

 

For most advisors selling Annuities, it is “one and done.” Meaning you will probably never see or talk to them again until the surrender is up on you contract. 

 

We take a different approach. As a Registered Investment Advisor (RIA), instead of taking an up-front compensation, we take a trail fee that spreads out compensation over the life of the annuity we feel that this keeps our focus in staying in tune with your long-term goals. We will meet with you minimally once a year to discuss what strategy you should take for the next year (yes, annuity holders can change their strategies annually).

How we get paid. Typically, Advisors get paid upfront as much as 10%. We on the other hand, get paid quarterly or annually (1% a year) in most cases. The compensation is paid to us by the insurance company so there is no direct cost to you. This keeps our focus in-line with your goals. We will be with you for many years, not just "one and done."

 

6991 E. Camelback Rd. Suite D-300, Scottsdale, AZ 85251 | Phone: 480-659-8380