Tax Deferred Annuities

Tax Deferred Annuity

Although there are many types of Tax Deferred Annuities today, in simplest terms a Tax Deferred Annuity is a tax advantaged savings vehicle. You pay premiums (or a series of premium payments) to an insurance company. In the case of a fixed deferred annuity the insurance company 1) guarantees your principal and pays you a competitive rate of interest and 2) to pay you a stream of income (if you want) at some future date. If you choose the income stream option, you determine whether your payments will be of a specific amount or for a certain period of time — or for the rest of your life. You pay taxes on any gains, only when you take the money out. Because of this tax deferral, you earn interest on your principal, interest on your interest and interest on money that otherwise would have gone to pay taxes. Annuities are "beneficiary instruments" so at your death, the proceeds pass directly on to your selected heirs, in most cases avoiding the delays and costs due to probate.

You can purchase a Tax Deferred Annuity contract by making either a single premium payment, or a series of payments over many years. In most cases there is NO contribution limit, you can add as much money as often as you want within the guidelines of the specific annuity product. All the guarantees of your Tax Deferred Annuity are backed by the claims paying ability of the insurance company that issued your policy. All withdrawals reduce the death benefit and may reduce the value of any optional benefits. Early withdrawals and other distributions of taxable amounts may be subject to ordinary income tax, a surrender charge, and if taken prior to 59 1/2, an IRS 10% premature distribution penalty tax unless an exception applies. If you live in Richmond, Henrico County, Chesterfield County, Hanover County, Goochland County or Powhatan County Virginia, let us put our many years of Tax Deferred Annuity experience to work for you.

Fixed Annuity

One type of Tax Deferred Annuity is a Fixed Annuity. A Fixed Annuity is issued by an insurance company. You make a pay a premium to the insurance company and they agree to pay you a fixed rate of interest for a specified period of time. Your money grows tax deferred during this "accumulation" period. Remember that annuities have early surrender charges. Keep in mind that annuities are guaranteed by the issuing insurance company and not by the FDIC. A Fixed Annuity is appropriate for long term savings. If you would like a free Fixed Annuity Quote or have questions, call us at 804-741-4972.

Fixed Indexed Annuity

For those who want the guarantees of a Fixed Annuity and the potential for additional interest credits, the Fixed Index Annuity, may be right for you. The Fixed Index Annuity is a type of fixed annuity with insurance benefits such as minimum guarantees and death benefits along with interest-crediting based on the growth, if any, of a market index or benchmark. It can include index caps, index spreads and participation rates, so it may not receive the full increases of a market index. It gives you the protection of principal (minus withdrawals and surrender charges) found with a traditional fixed annuity along with potential for additional interest credit based on the growth, if any, of a market index. Many Fixed Index Annuities offer death benefits as well as nursing home waivers to allow access to your funds. The newest generation of Index Annuities can be acquired with enhanced lifetime income features that may be available for an additional cost.

Since there are many designs of Fixed Index Annuities and many special riders if you have interest in learning more, and you are a resident of the State of Virginia, North Carolina or Maryland, call us at 804-741-4972 and we will get you a free Fixed Index Annuity quote.

Immediate Annuity

An Immediate Annuity allows you to start taking income sooner rather than later. The Immediate Annuity is purchased with a single lump-sum premium payment and you must begin receiving income payments usually within 12 months. With an Immediate Annuity, you choose the payout period, and the payments are calculated based on your age, the amount of your deposit and the length of the income stream that you select. Typically, if you pass away before the end of your selected income period, the remaining payments go to your selected beneficiary. If you would like a free Immediate Annuity Quote, please call us or complete the form below and we will get you the information as soon as possible.

Serving clients in Amelia county, Chesterfield County, Goochland County, Hanover County, Henrico County, Louisa County, New Kent County, Powhatan County, Ashland, Charlottesville, Mechanicsville, City of Richmond, City of Petersburg, Colonial Heights, Newport News, Tappahannock, James City County, Williamsburg and more....