ANNUITIES

Fixed Annuity

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The safest type of annuity.  

Fixed annuities are essentially CD-like investments issued by insurance companies. Like CDs, they pay guaranteed rates of interest, in many cases higher than a CD.

Fixed annuities can be deferred or immediate. The deferred variety accumulate regular rates of interest and the immediate kind make fixed payments - determined by your age and size of your annuity - during retirement.

Fixed Indexed Annuity

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  This special class of annuities yields returns on contributions based on a specified equity-based index, such as the S&P 500.
Indexed annuity contracts also offer a specified minimum which the contract value will not fall below, regardless of index performance. After a period of time, the insurance company will make payments to you under the terms of your contract. 

A fixed indexed annuity is not a stock market investment and does not directly participate in any stock or equity investment. 

Indexed Annuity

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 An indexed annuity is a special class of annuities that yields returns on contributions based on a specified equity-based index. The most common index is the S+P 500.  Indexed annuities offer the opportunity to earn higher yields based on stock market performance with protection against market declines. However, it is also common for an annuitant to experience lower-than-expected yields due to the combination of caps and fee-related deductions.  

Variable Annuity

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  A variable annuity is a tax-deferred retirement vehicle that allows you to choose from a selection of investments, and then pays you a level of income in retirement that is determined by the performance of the investments you choose. Unlike their fixed counterparts, variable annuities are designed to pump up your savings by giving you a chance for long-term capital growth  

Immediate Annuity

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 An immediate annuity is usually purchased with a lump-sum and guaranteed income starts almost immediately. Your investment converts into a guaranteed stream of income that is irrevocable once payments begin. In some situations, funds can be accessed, but some restrictions apply.  EX: SPIA  Single Premium Immediate Annuity  

FAQs

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Annuities can be sold as complex, but they are fairly simple. Financial Advisors have pushed certain annuity products that are better for their pockets, than the client's long term retirement goals. Pacific Insurance Agency advisors have access to all plans, we don't push a certain carrier or a certain policy, we look out for you. Feel free to call anytime with any questions you may have.

What is an annuity?

 

An annuity is an insurance product that pays out income, and can be used as part of a retirement strategy. Annuities are a popular choice for investors who want to receive a steady income stream in retirement.

Here's how an annuity works: you make an investment in the annuity, and it then makes payments to you on a future date or series of dates. The income you receive from an annuity can be doled out monthly, quarterly, annually or even in a lump sum payment.

The size of your payments are determined by a variety of factors, including the length of your payment period.

You can opt to receive payments for the rest of your life, or for a set number of years. How much you receive depends on whether you opt for a guaranteed payout (fixed annuity) or a payout stream determined by the performance of your annuity's underlying investments (variable annuity).

While annuities can be useful retirement planning tools, they can also be a lousy investment choice for certain people because of their notoriously high expenses. Financial planners and insurance salesmen will frequently try to steer seniors or other people in various stages toward retirement into annuities. A good annuity can be very a very valuable element in your retirement. Pacific One Insurance Agency has the right products for your specific needs. Let us go over the pros and cons involved and narrow it down to the best plan for you. 

 

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