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Annuities
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 Annuities
Annuities offer guaranteed income for life! An annuity is a unique financial product that provides tax deferral of interest
and capital gains, and the option of a guaranteed monthly income which you cannot outlive. It is a contract issued by an insurance
company. What makes annuities so compelling is the tax treatment the IRS gives them. In a way, an annuity is much like an
umbrella and when your money is placed under the umbrella it is treated differently as far as taxes are concerned. An annuity
contract, or policy, is an investment with an insurance company. It allows you to accumulate money tax deferred, meaning you
do not have to pay taxes on your investment until you take distribution from your contract, or policy. Such distribution of
monthly payments is called annuitization. This income can last for a predetermined number of years, or for the rest of your
life. Most people begin receiving annuity income when they retire and continue receiving it for the rest of their life. Let's
take a look for a moment at the power of Tax Deferred Dollars working for you. If you invest a dollar and it doubled every
year for 20 years tax deferred, it would be worth $ 1,048,576.00. Now that's exciting! If that same dollar was taxed in a
28% bracket it would only be worth $ 51,353.37. Now that is depressing! What happened to your other $ 1,000,000.00?
I will tell you what happened; Uncle Sam got a hold of it and distributed it for someone else's use. You just went from being a millionaire to a pauper. Notice that by postponing the tax, with a Tax Deferred Financial Product your money compounds faster, because you are earning interest on dollars that would otherwise have been paid to the IRS. Now understand that the annuity income is taxed as normal when you begin receiving it. But since most people receive annuity income after they retire, they generally will pay less tax on annuity income than on income they earn while working full time, because they are now in a lower tax bracket. Our clients today are using Tax Deferred Annuities and Life Insurance Policies as the foundation of their Financial Plan, rather than CD's. (Certificates of Deposits) or savings accounts which do not grow tax deferred and are offering pennies on the dollar. Your money doesn't grow at the rate of inflation. By investing in CD's, you are losing money over the years. Your estate is actually shrinking! Additionally, when crafted properly, an annuity can pass free of the probate process, thus reducing the costs and frustration of this tedious legal process. Our Estate Planning process blends a number of the products mentioned throughout this site to maximize the value of your estate while protecting it. A properly administrated Estate Plan can:
If this sounds right for you, please call (480) 947-3232 for your No-Risk And No-Obligation Estate Planning Analysis.
Until recently annuities were considered investments only for people nearing retirement due to the IRS tax penalty of
10% if money is withdrawn before age 59 ?. Today annuities are considered smart investments for people of all ages. There
are a number of different annuities available offering everything from modest to fast capital growth alternatives. Did you
know that Medicaid (AHCCS/ALTCS) may cover the costs of long term care, but you have to spend down your assets to state acceptable
levels and give up the freedom and control over when and where you will receive care. Annuities and Trusts are very commonly
used to preserve assets. In fact annuities and trusts are an integral part of Medicaid planning. Medicaid planning, in most
basic terms is the repositioning of your assets within state guidelines to obtain and maximize Medicaid benefits. Such planning
is accomplished through a well balanced strategy utilizing annuities, trusts, and life insurance.
Please call (480) 947-3232 to set up a time for Medicaid/ALTCS Planning provided by our Certified Senior Planner and our Elder Law Attorney. The first meeting is free to you and there is no obligation on your part. Let us help you and your family. An annuity could be right for you if:
Other Advantages Annuities may provide:
To arrange for your
Free, No-Risk And No-Obligation Annuity Analysis call us at (480) 947-3232 |
