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Every investment needs to meet one's goals in terms of the following five criteria:
#1 First, and PRIMARY is SAFETY
#2 is YIELD (interest or earnings growth)
#3 is FLEXIBILITY (Can I make periodic deposits/withdrawals of various amounts without incurring serious charges?)
#4 is LIQUIDITY (Can I withdraw all or a portion at will? - real-estate is a good example - it may be an excellent investment but it is not liquid because, in general, 100% must be liquidated to access any portion)
#5 is TAX CONSEQUENCES (Does my account grow in a tax-deferred environment and does it affect my over-all tax liability?)
What financial products are available to provide the best chance of achieving your financial objectives using low risk and low cost methods?
Three important differences between a SPDA (single premium deferred annuity) and a bank CD.
- A SPDA probably pays a higher interest rate than a CD.
- A SPDA has tax-deferred growth. The CD's interest is taxed each year as "unearned income".
- A CD typically imposes a penalty for withdrawing money prior to maturity; a SPDA may allow you to take out some of the money annually without incurring a fee.
Under what circumstances do annuities fit into a comprehensive retirement plan? They work best when planning for guaranteed asset growth with MAXIMUM SAFETY. A fixed-indexed annuity can provide safety of your principal combined with a guaranteed lifetime income. An annuity hedges longevity risk, the risk that you might outlive your money. That is what annuities are uniquely designed to do.
We recommend specific products for SAFETY OF ASSETS. We do not handle any VARIABLE or HYBRID annuities, nor do we handle any life-insurance policy claiming to be an investment. A properly selected market-indexed fixed annuity provides tax-deferred growth. A bank CD, although insured (up to a stated amount) is not as effectively protected, in our view, and credited interest is taxed annually as "unearned income".
Money placed in a top-rated company is as safe as anything that can be found and is guaranteed never to go backward. In today's volatile markets it makes sense when used as the safest and most secure portion of one's retirement portfolio. How much goes there depends upon your own situation.
An appropriate annuity provides a place for you to protect your retirement savings. As mentioned above, we never suggest any variety of cash-value life insurance as an investment. (WiseBird.com)
We have been major providers of flexible payment accumulation annuities and retirement annuities offered by the top-rated and immensely wealthy companies in which annuity deposits are protected by corporate assets.
Should you decide to "annuitize" your contract's accumulated value (selecting an income guaranteed for life or for a certain number of years) there is no reason that you must do so with the same company in which the value of your deposit(s) increased. You may shop top-rated companies, with our help and that of a CPA, to find the highest guaranteed monthly income available.
If you have any questions or need additional information, feel free to give me a call: Stewart Ogilby (941) 545-3600
Legal disclaimer: To ensure compliance with requirements imposed by the IRS, we inform you that any advice given is not intended to be used, and shall not be used, for the purposes of avoiding penalties under the applicable revenue codes or for the purpose of marketing or recommending to another person and/or entity any transaction or matter contained herein. We may not and cannot give specific federal or state tax, legal or accounting advice. While we discuss planning in these areas, individuals are expressly and specifically directed to seek and rely only upon the advice of legal counsel or a certified public accountant in regard to the tax or legal aspects of any transactions.
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