Annuities

At Family First Life Shepherds & Servants, we have worked with a wide variety of clients to create personalized annuities and retirement plans. Our job is to help you protect the assets you have and take the steps to be prepared for emergencies, medical issues, and ensure you and your loved ones have the funds available to continue to live comfortably.

Our team understands that everyone has unique financial goals in mind when it comes to retirement.

 

Since 2014, we’ve made it a point to design plans that give you the protection and features you need. Since we’re not affiliated with any particular insurance company, we’ll never try to push products on you that you don’t need, and we can help you to shop around and save. To schedule a consultation, contact us online today.

How does a fixed indexed annuity work?

1 Power of Indexing

– Indexing allows your retirement to participate and lock-in the upside market gains, but never in the downside market losses.

2 Security and Guarantees

– All companies and financial institutions we have selected, carry an “A” rating or higher with the major financial rating institutions.

– Each company is a legal reserve company, meaning for each dollar of liability there is a dollar of liquid reserves.

3 Tax Deferred

– This allows you to accumulate even more interest, better known as triple-compounding interest.

– You earn interest, earn interest on your interest and you earn interest on the money that you would have normally paid in taxes.

4 Eliminate Fees

– Fees can eliminate a significant portion of your hard earned money and investment returns. FIA’s eliminate the fees seen in traditional investments such as load fees, expense fees and 12b-1 fees.

5 Eliminate Risk

– One of the major problems with retirement investments is the sequence of returns risk.

– If a retiree experiences too many negative returns in a short period of time while withdrawing funds to live off, they could actually run out of money in retirement.

6 Guaranteed lifetime income

– Only annuities can offer guaranteed lifetime income.

– Outside of principle and investment returns, annuities provide a third payment option called mortality credits, which are exclusive to FIA’s.

– Mortality credits can provide higher withdrawal rates in retirement when compared to SAFEMAX rates and can guarantee a paycheck for life, even if the money has been depleted.

What is a Multi-year Guaranteed annuity? (MYGA)

According to annuity.org, a MYGA is a type of fixed annuity that offers a guaranteed fixed interest rate for a certain period, usually from 3- 10 years. This type of annuity is more appropriate for someone who is closer to retirement, prefers tax deferral, and a guarantee of investment return: no taxes on growth until you start taking payments.

 

How do MYGA’s work?

(All information in this section provided by annuity.org) 

According to annuity.org, You sign a contract with an insurance company in which you pay the insurance company a premium in exchange for a guaranteed fixed interest rate on the contribution for a specified period of time.

What this does is tie up a lump sum of money to allow it to accumulate interest.

 

 

Key Things to remember:

– surrender charges will accrue if  you make withdrawals before accumulation period is over

– some annuity providers provide penalty free partial withdrawal

– At the end of the accumulation period, you can receive the premium and interest earned, or you may be able to renew the contract (interest rates may differ)