What is an Annuity?
An annuity is an insurance product that promises to pay you regular income either immediately or in the future. In essence an annuity is your own personal pension plan. Annuity contracts come in three main types:
- Fixed Annuity
- Variable Annuity
- Indexed Annuity
Given the current interest rate environment, we at Thieman-Stinnett view annuities as a great alternative for the fixed income portion of your portfolio. Annuities offer the ability to remain invested in the market while mitigating downside market risk.
Thieman-Stinnett is appointed by the following Insurance Companies:
The annuities offered by Thieman-Stinnett's Financial Advisors can be tailored to needs the of your personal income and setup a legacy for your beneficiaries. Each plan has its advantages and should be discussed in detail. To learn more about how an annuity may benefit your portfolio, call us at 325-655-5520 or click on the Contact Us link above.
Below is a link to our newsletter about the Living benefits of Annuities and how they can help your retirement needs.
Living Benefits Can Help Counter Retirement Risk
Fixed vs Variable Annuities
Annuities are long-term investments. Guarantees are subject to the claims paying ability of the issuing insurance company. Annuities contain mortality, expense charges, account fees, management and administrative fees, and charges for features and riders. Additional fees apply for living-benefit options. Investment restrictions may also apply for all living benefit options. Violating the terms and conditions of the annuity contract may void guarantees.
Withdrawal of earnings will be subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% federal tax penalty. Withdrawals can lower the cash value and decrease death benefits. Surrenders before the end of the annuity’s term can result in a loss of principal.
Fixed annuities may have surrender charges that are assessed during the early years of the contract if the contract owner surrenders the annuity.
The sub-accounts in a variable annuity fluctuate with market conditions and when surrendered the principal may be worth more or less than the original amount invested.