Annuities, a Great Idea, but.....
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Life Insurance

An Amazing Retirement Vehicle

Should I Replace My Current Policy?


Compare the S & P 500 to Equity Indexed Annuity


Compare S and P 500 to Equity Indexed Annuity

Year        % S and P 500     S and P Actual Value       42% Annuity Rate        Annuity Value Using 42% Rate

1999             19.53%                 $119,530                              8.20%                                  $108,200

2000             10.14%                 $107,410                              0.00%                                  $108,200

2001             13.04%                 $ 93,403                              0.00%                                   $108,200

2002             23.37%                 $  71,575                             0.00%                                   $108,200

2003             26.38%                 $  90,457                           11.08%                                   $120,189

2004               8.99%                 $  98,589                             3.78%                                   $124,732

2005               3.00%                 $101,546                             1.26%                                   $126,303

2006             13.62%                 $115,377                             5.72%                                   $133,528

2007               3.53%                 $119,450                             1.48%                                   $135,504

2008              38.49%                $ 73,473                              0.00%                                   $135,504

2009              23.45%                $ 90,703                               9.85%                                  $148,851

2010              12.78%                $102,295                              5.37%                                  $156,845

2011                0.00%                $102,295                              0.00%                                  $156,845

2012               13.41%               $116,013                              5.63%                                  $165,675

2013                29.60%              $150.352                            12.43%                                  $186,268

2014               11.39%               $167,477                              4.78%                                  $195,172

2015                 0.73%               $166,255                              0.00%                                  $195,172

2016                 9.54%               $182,116                              4.01%                                  $202,998

2017                19.42%              $217,482                              8.16%                                  $219,563

2018                 -6.24%              $203,912                              0.00%                                  $219,563


Are You Making This Annuity Mistake?

The IRS Could Take 50% of Your Annuity Value!


Many annuity owners lose half of their annuity value and most are

not aware of it!

Take a look at the followitng example:

Mary, age 55, purchased a fixed annuity for $50,000. She

held it for 10 years and theinterest accumulated nicely.

The account doubled to $100,000 (a compounded rate of 7.17%).

So far Mary was very happy with this alternative. She never

gave much thought about what happens to the annuity at

her death. She figured she would eventually withdraw

the money and use it. The truth is that less than 10%

of annuity owners make any withdrawals from their annuity.

If the owner passes away, the policies can get hit with some

very large taxes.  In Mary's case, here's the picture at death

when the taxes are due:

Annuity Value: $100,000

Income Tax -20,000

Estate Tax -32,000

Beneficiaries get $48,000

Is there a remedy? Yes! Mary could annuitize the annuity

(deferred taxes or sales charges could apply or a 10% tax

penalty if under age 59 1/2). When you annuitize the annuity,

you select a payout option that may include a lifetime income

from the annuity company. You trade the $100,000 balance for

a guaranteed income for life. Mary had her insurance company

make monthly payments to her of $700. She used the after tax

dollars to purchase a life insurance policy on her life, payable

to her beneficiaries. She purchased a $275,000 universal life

policy with a death benefit guaranteed to age 115. Now, instead

of Mary's heirs getting only $48,000 at her death, the heirs receive

$275,000 of life insurance death benefit, free of income taxes.

(The proceeds of the life insurance policy can be kept out of the

estate through proper estate planning). That is almost 6 times

as much money for the beneficiaries.


Annuities Help Reduce or Eliminate the Tax on Your

Social Security Income


Before 1984, Social Security income was tax free.  Today, however, taxpayers are

paying tax on up to 85%of their Social Security income.  The good news is that

annuities can reduce or eliminate the income tax on your Social Security income. 

The IRS calculates the tax on your Social Security income based on your total

income from all sources. However, income you earn on an annuity that is

reinvested does not appear on your tax return. Therefore, annuities may

reduce your total income for Social Security taxation purposes.  Tax free

bonds will not reduce the tax on your Social Security income as tax free bond

interest is included for Social Security taxation purposes.

In fact, if you shelter enough income in annuities and bring your

income below the thresholds (adjusted gross income of $25,000 for

a single taxpayer and $32,000 for a married taxpayer) you then pay

no tax on your Social Security income.

For $50,000, Get $5,829 Every Year!!


It is possible to get a safe return on your money with an immediate annuity. 

An immediate annuityis simply the payment of a premium to an insurance

company.  In exchange, the companyprovides you a monthly income for life.

You cannot outlive this income!

Here's an example:  A 76 year old gentleman paid $50,000 in premium

to an insurance company.  He now receives $485.80 per month, every month. 

That's $5,829.60 each year of checks in the mail.  For $50,000, where else can

you get a guaranteed $5,829 every year for the rest of your life?  Regardless of

how long this man lives, he gets his check every month.  And if he dies early,

his beneficiaries will receive the 485.80 each month until the $50,000 in payments

have been received in total.  This is called the "installment refund" provision. 

There is no way to lose the initial amount of money on such an annuity,

yet payments continue for life.  This can be a very good way to get a

guaranteed return on your money.