Get the Highest Quotes on Your Annuity Payments
It is hard to turn on the television, computer or even open a newspaper without seeing an expensive ad offering to purchase your Annuity Payments. We encourage you to get quotes on your annuity payment from the companies that advertise on TV every few minutes. Compare them with the annuity payment quotes of our many accredited direct funding sources, who bid for your business. We simply aim to educate you on your rights and provide the best value possible for those who take the time to research selling their annuity payments. There is no obligation, just piece of mind.
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Frequently Asked Annuity Questions
An annuity can be a wonderful vehicle that can offer a lifetime of guaranteed income and asset protection but with any financial product it is important to understand the product and the risks. A financial advisor can help you avoid the pitfalls of not choosing the right annuity to match your needs.
How safe is an annuity? Annuity products are backed by the issuing insurance company. The financial stability of the insurance company should be carefully considered when choosing an annuity. Most insurance companies are assessed by rating agencies such as AM Best, Standard & Poor’s and Moody’s. These agencies rate the issuing insurer based on a number of statistics to determine the relative creditworthiness of the company. Generally you want to look for an AM Best rating of A or better when considering insurance company. Ratings can be found online or can be provided by a knowledgeable financial advisor.
How difficult is it to change annuities if something better is offered? A 1035 exchange can help facilitate a transfer to a new annuity without triggering a taxable event. In this highly competitive market, annuity companies continually offer new features and you may find that a newer version may better fit your needs. Surrender charges, annual fees and other charges should also be considered before making the change. When moving from one annuity to another a new surrender period starts with the transfer.
What is a surrender charge? Surrender charges are typically the largest transactional cost in an annuity exchange. They are the fees incurred when funds are withdrawn or sold before the contract reaches term. Surrender charges are highest during the first few years and the fee generally declines year to year, typically reaching zero after five to ten years. However, many annuity products offer annual withdrawals of up to 10% of the initial investment without penalty. A financial advisor can provide valuable information in comparing annuities to help avoid unnecessary expenses and fees when choosing an annuity.
What are some of the tax advantages of an annuity? Annuities offer asset protection. They are tax deferred meaning no taxes are incurred until a payout is made and then only the the interest is taxed as ordinary income. Deferred annuities are not an income factor with respect to social security taxation. Finally annuities are not subject to probate and can be transferred directly to a named beneficiary.
What is the major disadvantages of an annuity? They are not put and take accounts. Annuities are designed to be long-term financial instruments for retirement planning. All annuities are subject to a 10% penalty tax when liquidated before age 59 1/2. Surrender charges can be high in the early years should you need to access all of your money.