Annuities
| The DeShaw Agency |
| The DeShaw Agency |
An annuity is an insurance company's
equivalent to a bank's certificate of deposit
or CD. Included in annuities are Roth IRAs.
The difference between an annuity and a CD
is the annuity grows tax deferred, meaning
the annuity's accumulation in value is not
subject to current income tax as a CD. The
deferment makes a difference in the value of
the investment over the years, as opposed to
making provisions for paying taxes each year
on the investment. An annuity has surrender
charges as a CD does. You may withdraw up
to 10% of the accumulated value after 1 year
from date of issue without penalty from the
equivalent to a bank's certificate of deposit
or CD. Included in annuities are Roth IRAs.
The difference between an annuity and a CD
is the annuity grows tax deferred, meaning
the annuity's accumulation in value is not
subject to current income tax as a CD. The
deferment makes a difference in the value of
the investment over the years, as opposed to
making provisions for paying taxes each year
on the investment. An annuity has surrender
charges as a CD does. You may withdraw up
to 10% of the accumulated value after 1 year
from date of issue without penalty from the
annuity. The annuity can be written as a qualified plan, meaning the entire
amount deposited is deducted from your taxes. On the other hand a non
qualified plan uses after tax dollars to grow tax deferred. An annuity has
settlement options to provide for equal monthly payments you can not
outlive. Some annuities pay a bonus in the first year of issue which credits
significantly higher rates than a CD. There are few limitations which would
deny a person the ability to write an annuity. A couple of these are
minimums based on company requirements and age. Persons approaching
90 years old may have trouble finding a company to write the annuity.
Some annuities credit interest bonuses to their contracts. The interest
bonus is tied to the amount of premium submitted at the time of issuance
of the policy, although some annuities credit bonuses during the first five
years of the contract when additional money is deposited to the account.
This bonus also earns interest within the contract and helps build to the
accumulation value. The bonus is used to attract new customers to the
company and generates significant additional interest to the contract. The
company can credit this additional amount since there are surrender
charges that are greater than the bonus, if the client chooses to cancel the
contract during the first few years. A client can access their money
without incurring these surrender charges by utilizing the 10% free
withdrawal privilege annually or annuitizing the contract which sets the
contract up for systematic payment to be made over a period of time,
usually five years minimum. The annuity's bonus schedule currently in
place credits either 5% or 10% depending on the contract sold. For
additional information call or E-mail us.
We use several companies to place our business. The main companies we
use are Midland National Life Insurance and ING Groep N.V. Both of these
companies are financially strong and have great products.
amount deposited is deducted from your taxes. On the other hand a non
qualified plan uses after tax dollars to grow tax deferred. An annuity has
settlement options to provide for equal monthly payments you can not
outlive. Some annuities pay a bonus in the first year of issue which credits
significantly higher rates than a CD. There are few limitations which would
deny a person the ability to write an annuity. A couple of these are
minimums based on company requirements and age. Persons approaching
90 years old may have trouble finding a company to write the annuity.
Some annuities credit interest bonuses to their contracts. The interest
bonus is tied to the amount of premium submitted at the time of issuance
of the policy, although some annuities credit bonuses during the first five
years of the contract when additional money is deposited to the account.
This bonus also earns interest within the contract and helps build to the
accumulation value. The bonus is used to attract new customers to the
company and generates significant additional interest to the contract. The
company can credit this additional amount since there are surrender
charges that are greater than the bonus, if the client chooses to cancel the
contract during the first few years. A client can access their money
without incurring these surrender charges by utilizing the 10% free
withdrawal privilege annually or annuitizing the contract which sets the
contract up for systematic payment to be made over a period of time,
usually five years minimum. The annuity's bonus schedule currently in
place credits either 5% or 10% depending on the contract sold. For
additional information call or E-mail us.
We use several companies to place our business. The main companies we
use are Midland National Life Insurance and ING Groep N.V. Both of these
companies are financially strong and have great products.
| Contact Us dagency@nemont.net 406-765-1860 |
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