Are You Losing Money or missing out?

Do you have savings sitting in low interest-bearing accounts or are you concerned with market risk? A multi-year guaranteed annuity (MYGA) may offer potential for excellent accumulation, guarantee, and tax deferral.

Guaranteed retirement income is becoming a hot topic with the low interest rate environment and market volatility.

Those planning for retirement should evaluate their circumstance to determine whether they’re a good candidate for a guaranteed income option like an annuity. The purpose of a fixed annuity is to help with a variety of financial goals (tax deferral, principal-protected accumulation, lifetime income streams, access to funds, wealth transfer benefits, and it bypasses probate if owned properly).

By definition, an annuity is a legal contract between an insurance company and the owner of the contract. It is an agreement whereby the insurance company makes specific guarantees in consideration of money being deposited with the company. An annuity can only be issued by a life insurance company and can only be sold by a currently licensed life agent.

It’s not for everyone but it is for a large portion of society because of the many benefits they offer. Some of those being:

  • Safety without market risk

  • Liquidity

  • No sales charges

  • Tax advantages

  • It bypasses probate due to named beneficiaries

  • No medical underwriting required.

  • Strong compound rates 

  • Tax deferred growth 

  • Numerous withdrawal options

  • Ability to stay in full control 

  • For some annuities, in the event that the annuitant is unable to perform 2 of the 6 activies of daily living (ADLs) the company waives surrender charges or may have an income doubler.

Finding an Annuity That’s Right for You

A licensed life agent who suggests an annuity must choose one that they think is right for you, based on information from you. They need complete information about your life and financial situation to make a suitable recommendation. The agent should ask about your age; your financial situation (assets, debts, income, tax status, how you plan to pay for the annuity); your tolerance for risk; your financial objectives and experience; your family circumstances; and how you plan to use the annuity.

Maturing CDs, checking and savings accounts, money markets, IRA rollovers, plus many more are all kinds of funds that could go into an annuity. Dollars earmarked for short-term needs SHOULD NOT go into an annuity. Those who need current income should consider an immediate annuity as opposed to a deferred annuity. For those looking for one of the safest ways to accumulate dollars on a tax-advantaged basis will find the deferred annuity extremely beneficial.

If you aren’t comfortable with an annuity, ask one of our licensed life agent to explain why they recommend them. DO NOT buy an annuity you don’t understand or that doesn’t seem right for you. Ask about risks and decide if you can accept them (such as surrender charges and fees).

The interest (earnings) that accumulate income tax-deferred until dollars are withdrawn can help a client build a substantial account for their retirement and may give them an income they cannot outlive. It’s not for everyone, but it is for a large portion of society.

If you’re experiencing the low interest-bearing accounts or are concerned with market risk, you might want to consider a safety and guaranteed option, like a Multi-Year Guarantee Annuity (MYGA) as an alternative.

Fill out the form below to see if a Multi-Year Guaranteed Annuity (MYGA) is an option for a guaranteed retirement income for you.

Have a Question? Call us at (712) 244-5250 to speak to a Local Siouxland Agent.