The Benefits of Equity Indexed or Fixed Annuities

An annuity is a unique retirement savings product. When you purchase an annuity, you pay an insurance company premium in exchange for a lump sum or regular income later.

Many annuities guarantee a fixed rate of interest for the life of the contract or at least a minimum guaranteed rate. Some also come with an optional feature, usually available for an additional fee, that guarantees a certain amount of income after an established number of years.

Retirement Nest EggOne of the primary benefits of annuities is their tax-deferred status. You do not pay income or capital gains taxes on the interest your annuity earns until you make withdrawals from the annuity, and, unlike some tax-deferred retirement savings vehicles like 401(k)s or IRAs, there are no IRS-mandated contribution limits on annuities. Unless the contract is purchased inside an IRA or qualified plan, you can contribute as much into an annuity as allowed by the insurance company from which you purchase it.

Annuities also give you the option of receiving a lifetime annual income amount, giving you a source of retirement income you can’t outlive. The amount you receive depends on many factors, such as the type of annuity you purchase and the age when you being receiving income.

In addition, parents and students who apply for financial aid do not have to list annuity contracts when applying for student financial aid.

Annuities can complement other sources of retirement income, such as Social Security, pensions and employer-sponsored retirement accounts.

Infinite Wealth Advisors can provide you a free, no-obligation equity indexed or fixed annuity quote that can give you an approximate amount of retirement income based on what you can contribute to an annuity contract. Contact us today to learn more.


13545 – 2014/7/10


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This information has been provided by a licensed insurance professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting the insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax, trust and estate, or investment advice. Infinite Wealth Advisors is not an investment advisory firm.  Investment Advisory Services provided by NAMCOA® – Naples Asset Management Company®, LLC, a federally registered investment advisor, website: .