Annuity Rates

CD Type Fixed Annuity

• 4.0% 10 Year Guaranteed Tax Deferred 
• 3.0% 5 Year Guaranteed Tax Deferred
• 1.8% 3 Year Guaranteed Tax Deferred
• CD Risks Brochure 

 Fixed Indexed Annuity

• 45% Bonus or 14% Annual Growth
• 8.0% Bonus every year till age 90
• 25% Premium Bonus 5% Annual Growth          
• 10% Premium Bonus 8% Annual Growth
• 5% Premium Bonus 10% Annual Growth        

 Annuities Vs. CDs

Annuities and CDs (bank certificates of deposit) are similar in that they are safe, secure investments with guaranteed rate of returns based on interest rates, both issued by large financial institutions, CDs issued by banks, Annuities offered by insurance companies, but they both possess inherent differences as well.

The big differences are that while Annuities offer everything CDs offer, they carry several advantages.

1. Generally Higher returns
2. Tax-Deferral
3. Liquidity

CDs do have FDIC protection to guard against Bank or banking industry failure, but Annuities also have safety measures put in place by the state to ensure Insurance companies have reserve pools in place. Insurance companies may also be vetted for financial strength by obtaining their rating from objective rating firms -- Standard & Poor's, Moody's, A.M. Best or Duff & Phelps . The more solid the rating usually equates to a more solid financial backbone of Insurance Company.

Higher Returns:
Annuities, like CDs, are hinged to interest rates. But when rates are low so are CD returns whereas annuities have a minimum guarantee in place, usually 3% or 4%. Your investment will never dip below the guaranteed minimum interest rate during times of falling or low interest rates.

Again, low interest rates mean CD returns will be low as well. To offset the problem of low or falling interest rates, insurance companies equip annuities with guaranteed minimums. This is an agreed minimum rate of interest so that your investment is assured not to fall below the minimum performance even if CD rates do. Compare current CD rates at Bankrate.com.

Tax-Deferral:
You pay annual taxes on CD interest earned without being able to withdraw funds until your investment term is over. With annuities, there is also a set term, but the earnings are tax-deferred. You only pay taxes on interest earned when money is withdrawn. So with annuities the deferred tax on your interest remains in the investment earning you more and more money, instead of being paid out to state and federal tax agencies on a yearly basis.

Liquidity:
CDs do not allow you to withdraw any monies during term. Period. Annuities have provisions that allow you to withdraw money, generally 10% of your account value annually plus many contracts allow you to remove the earned interest on a monthly basis. Several other contract provisions allow you access to all of your funds such as in the event you are hospitalized, undergoing a life-threatening illness, subjected to a permanent or extended stay in a nursing home, or other major calamities that affect you economically. In addition, annuities can be structured to pay-out for the life of the owner over a fixed term such as five or ten years, thereby spreading out your tax-burden and providing enhanced income security. In short, Annuities offer enhanced flexibility.

(888) 235 8060

Annuity vs CD: Fixed Income Options

Are you looking for the best places to put your money for your retirement? For some investors, the debate will be between putting their money in a CD (certificate of deposit) versus a fixed annuity. The debate of the annuity vs CD is best determined with a thorough analysis of your individual financial situation and what your objectives are. There are a number of advantages in an annuity vs CD financial strategies and choosing the one that’s best for you requires understanding the benefits and drawbacks of both.

Both a CD and a fixed annuity will offer excellent benefits for retirees looking for ways to ensure they have substantial cash flow throughout the time after retirement. However, both investment strategies are quite different. While both are considered low-risk investments, CD’s are issued by banks and are therefore guaranteed by the FDIC (Federal Deposit Insurance Corporation). Since annuities are distributed by insurance companies, they are not ensured by the U.S. government, but they can still be incredibly sound investments if the issuing insurance company is financially secure.

Investing in CDs

If you are planning for a short-term financial goal, a CD can be a good choice. Since a CD’s benefits will end after an agreed-upon date, a CD can be a good way to save money for a new car or for a down payment on a new home. However, since most retirees need a more long-term approach to their financial strategies, the long-term annuity can be a better choice.

Investing in Annuities

Annuities can offer a guaranteed amount of money to the investor (and spouse) for the remainder of his or her lifetime. The annuity is specifically designed to help the retiree budget on a set amount of monthly cash and help to protect the investment funds that have been accumulated before retirement. In addition, the annuity can be set up to continue after your death to provide cash for heirs.

In addition, taxes can be more beneficial with a fixed annuity than with a CD. The CD’s earnings are taxable within the year – even if you don’t access the money. However, the annuity’s earning are tax-deferred, allowing the investment to grow each year and will not be treated as taxable income until the money is withdrawn. The benefits of tax deferral can have a big impact on the overall investment for the retiree, enabling them to have a larger investment over time to ensure a stronger financial future. For a retiree looking for a smart way to extend their investment over time, an annuity can be a great choice.

To find the best annuity products request a free, comprehensive quote comparision. Secure your retirement today.

.

(888) 235 8060