Deal 1     www.AskMrAnnuity.com

Insured Life Contingent Payments

Company: John Hancock

Purchase Price: $160,963.35

Rate: 6%

Payments:

170 Monthly Payments

$2,656.91/mo From 2/17/2031 to 3/17/2045

With a 3% COLA Every 12 Months

Total Return: $552,799.46

Reference Number: 01-2311

Priced as of:  1/1/2017

No court date yet

Deal 2

Insured Life Contingent Payments

Company: New York Life

Purchase Price: $66,059.23

Rate: 6%

Payments:

78 Monthly Payments

$1,000/mo From 11/15/2025 to 5/15/2032

7 ANNUAL Payments

$7,500/YR From 12/1/2025 to 12/1/2031

Total Return: $132,500

Reference Number: 01-2308

Priced as of:  12/15/2016

No court date yet

Deal 3

Insured Life Contingent Payments

Company: Fidelity and Guarantee Life

Purchase Price: $63,317.55

Rate: 5.25%

Payments:

133 Monthly Payments

$650.00/mo From 11/1/2017 to 11/1/2028

Total Return: $86,450.00

Reference Number: 01-2301

Priced as of:  12/27/2016

No court date yet

Deal 4

Insured Life Contingent Payments

Company: Fidelity and Guarantee Life

Purchase Price: $121,908.50

Rate: 5.75%

Payments:

180 Monthly Payments

$1,000.00/mo From 1/1/2017 to 12/1/2031

Total Return: $180,000.00

Reference Number: 01-2302

Priced as of:  12/20/2016

No court date yet

Deal 5

Insured Life Contingent Payments

Company: Trans America

Purchase Price: $161,586.82

Rate: 5.25%

Payments:

120 Monthly Payments

From 8/1/2026 to 7/1/2036

$2,481.74/mo with a 3% COLA Every 12 Months

Total Return: $341,404.44

Reference Number: 09-09

Priced as of:  12/15/2016

Court Date: 11/27/2016

Deal 6

Federal Pension Structured Cash Flow

(NOT a Structured Settlement)

Purchase Price: $100,000

Rate: 6.5%

Payments:

60 Payments of $1,947.92

From 12/1/2016 to 11/1/2021

Total Return: $116,875.20

Priced as of: 11/1/2016

No court required

Call for details

Deal 7

Select Pension Structured Cash Flow

(Combo Fed, State, Blue Chip)

(NOT a Structured Settlement)

Purchase Price: $100,000

Rate: 7%

Payments:

60 Payments of $1,969.99

From 12/1/2016 to 11/1/2021

Total Return: $118,199.40

Priced as of: 11/1/2016

No court required

Call for details

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Read the Buyer's Guide to purchasing structured settlement. Click HERE!

Andy Cockrell

Vice President

Ask Mr. Annuity

3033 N. Central Ave. Ste 435
Phoenix, AZ 85012
866-551-2522
Fax: 602-795-6705
Andy@AskMrAnnuity.com

www.AskMrAnnuity.com

Deal 1      www.AskMrAnnuity.com

Life Contingent Insured Payments
Company: NY Lottery
Purchase Price: $303,726,61
Rate:  5.5%
Payments:
49 Quarterly Payments of $13,000.00
From 11/15/2024 to 11/15/2036
Total Return: $637,000.00
Reference Number: MS-02
Estimated Closing Date: 9/15/2016
Insured with a $500,000 Life Insurance
Policy through American General

Deal 2

Guaranteed Payments

Company: GABC – Obligor Florida Assignment Corp

Purchase price: $496,124.08

Rate: 4.75%

Payments:

1 Lump of $103,613.82 on 8/7/2019

1 Lump of $340,447.83 on 8/7/2024

1 Lump of $310,000.00 on 8/7/2029

Total Return: $754,061.65

Reference Number: 20-24955

Estimated Closing Date: 9/1/2016

Already court approved and serviced by the factor

Deal 3

Guaranteed Payments
Company: GABC – Obligor Florida Assignment Corp

Purchase price: $147,457.33

Rate: 4.00%

Payments:

1 Lump of $175,000.00 on 1/13/2021

Total Return: $175,000.00

Reference Number: 20-24903

Estimated Closing Date: 9/1/2016

Already court approved and serviced by the factor

Deal 4

Guaranteed Payments
Company: GABC – Obligor First Executive Corp

Purchase price: $284,897.24

Rate: 5.00%

Payments:

1 Lump of $717,000.00 on 8/1/2035

Total Return: $717,000.00

Reference Number: 20-24931

Estimated Closing Date: 9/1/2016

Already court approved and serviced by the factor

Deal 5

Guaranteed Payments
Company: GABC – Obligor First Executive Corp

Purchase price: $278,695.81

Rate: 3.50%

Payments:

1 Lump of $305,000.00 on 4/15/2019

Total Return: $305,000.00

Reference Number: 20-24905

Estimated Closing Date: 9/1/2016

Already court approved and serviced by the factor

Deal 6

Guaranteed Payments
Company: GABC – Obligor Florida Assignment Corp

Purchase price: $115,847.16

Rate: 4.50%

Payments:

1 Lump of $175,000.00 on 1/15/2026

Total Return: $175,000.00

Reference Number: 20-24904

Estimated Closing Date: 9/1/2016

Already court approved and serviced by the factor

Did you know....????

Secondary Market Annuities (SMA’s) are a safe and secure way to create a guaranteed income stream either immediately or at some point in the future. They are offered by brand name, “A” rated or better, insurance companies. These types of financial tools have traditionally only been available to institutional investors and hedge funds, however, over the past several years, they have become available for private investors. The rates of return are very high, sometimes more than double what current rates are in similar investment categories. The most important thing to understand about these unique opportunities, is that they are singular in nature, meaning each one has its own set of circumstances, parameters, interest rate, length of payout, purchase price, payments, etc.

The Great Crash Ahead

Harry S Dent's new book The Great Crash Ahead is a MUST READ! It predicts the dramatic crash of the market and how to protect yourself. These strategies will protect your retirement funds and save you from a repeat of the financial meltdown of 2009-2010.

Death Benefits and Annuities

Annuities are contracts with written contractual provisions which include benefits paid to a named beneficiary. In the event of the annuitant (a person) dies, the proceeds from an annuity are passed to the beneficiary. The beneficiary can be a person or persons, a trust or an organization. If the annuity names a beneficiary, the funds are paid without the need of probate.

Several options are available to the beneficiary for receiving the funds. These settlement options can be a lump sum or a payment over a desired time period. If the annuity benefits include ant tax deferral (accumulated interest) the tax liability belongs to the beneficiary. As an example, if the annuity had an original $25,000 deposit that had grown to a value of $50,000 the taxable liability would be $25,000. The actual tax liability would be based on the tax bracket of the beneficiary.

Many assets inherited at the death of an estate qualify for “step up” in basis which means that the value of the asset at the death of the person could be sold based on the value at that time. If the asset was sold at or less than the value at the time of death, there would be no tax liability incurred. Annuities do not qualify for step up in basis because they had enjoyed a tax deferral period prior to the death of the annuitant. If the funds are received by the annuitant over a period of time, the tax liability is also “spread out” over the selected time period.

The IRS allows for the beneficiary to select a time period to make arrangements when to receive the funds. The beneficiary is allowed up to five years to defer receiving the funds and assuming the tax liability. This time period allows for the beneficiary to obtain the proper tax and investment advice as to how to proceed based on their personal situation.

If the annuitant prior to death had selected an income option for receiving money from the annuity, the payments could continue to the named beneficiary. A death claim would need to be filed so tax liability and payment selections could be made.

Why Annuities are a Wise Choice for Your Future

Putting off saving for the future for a later time is not a wise decision. You might argue that the money that you are earning today is meant to provide for your present needs and wants. You can always save more money when you receive a big cash flow sometime down the road, right? Wrong. This is the mistake that most people make. However large the amount of money you receive, it will always be easy for you to find things to spend it on.

Only a scant percentage of the population grow old to live a comfortable life. Most people grow old lacking the resources they need to live a decent life. You have to make a paradigm shift in the way you look at savings if you do not want to spend your old age in destitute. You have to sow the seeds today in order to reap the benefits later on in life when you need it more. Try to have annuities explained to you and you will find that it might be a good instrument to use in order to ensure that you do enjoy what you have worked hard for not only today but for the rest of your life.

There are various types of annuities that you can choose from. Your local financial institutions will be able to offer you a range of options. These options are largely determined by the amount of regular contributions that you can make today, the kind of yield you want to enjoy, and the mode of distribution you wish to have during your retirement years. If you have a large amount of money that you can already allocate for your growing your future retirement fund, you can choose to put in a lump sum payment in a single premium annuity.

Depending on your risk profile, you can choose to go for a variable annuity or a fixed annuity. A fixed annuity would assure you of a rate of accumulation for your funds while a variable annuity will allow your insurance company to shift your funds from time to time to take advantage of investment options that would give your money more yield.

Make sure you get all annuities explained because whatever kind of annuity you choose should match the financial situation you are in and the kind of retirement income you wish to enjoy when you retire.

Index Annuity Performance

The interest rate you receive from an index annuity varies because your investment is linked to the S&P 500, or a similar stock market index. The returns will also differ from product to product, because of different crediting methods. An index annuity balance is impossible to predict, but we can look back at how they would perform in past market conditions.

In a hypothetical comparison of an index annuity vs in a direct S&P 500 investment between 1999 and 2009.

The index annuity in this example has typical contract terms: 100% participation rate, 9% cap, and it resets annually.

A $100,000 investment directly into the S&P 500 in 1999 would have resulted in an approximate balance of $73,459 by 2009. The investment would have lost over $15,000 not to mention inflation. On the other hand, your index annuity would be worth over $150,000, a difference of over $77,000.

The index annuity never loses ground when the S & P has a negative year. The reason for this is that it 'locks' in pervious years' returns, meaning it will never go lower than its highest point. Sound too good to be true?

The trade off is that in periods of substantial market growth, the annuity will only participate in a portion of it.

However, there is comfort in safety. And, you can participate in the market, yet your money will always be safe with an index annuity.

Making Sure Your Assets are Covered

Make certain your estate is protected and liability is minimal. Learn these basic steps to be protect your assets and reduce your liability.

· Neglecting to provide trust provisions for minor children as beneficiaries of a will.

· Not updating your plan when you move to another state or change marital status.

· Having a will, but neglecting the other important documents such as a durable power of attorney, health care power of attorney, and living will and HIPAA authorization.

· Expecting that jointly owned bank accounts or other property will automatically pass under the terms of your will.

· Not realizing that beneficiary arrangements and designations supersede a will for life insurance and retirement accounts.

· Neglecting to update beneficiaries for life insurance and retirement after divorce or death of a beneficiary.

· Neglecting to naming successor fiduciaries and personal representatives (executor) in your will or trust.

· Not informing your family and personal representative (executor) the physical location of your estate planning documents.

· Neglecting to keep your estate plan upgraded and renewed on a timely basis.

· Having a living trust, but failing to fund it.

· Altering, writing or marking on the original documents in an attempt to change a name or other information without witnesses or proper documentation.

· Not seeking proper legal counsel in setting up your estate planning trust or other documents.

These mistakes only apply to those who have attempted to put in place estate planning; most people have made the mistake of not planning at all and are guilty of the error of omission.

As with all important decisions, seek competent legal and tax advice. An attorney experienced in estate planning issues can be of great assistance in regards to your personal situation. If possible obtaining a second opinion makes good sense.

Using Annuities to Achieve Your Goals

Whether your goal is saving for retirement or you have already reached that goal and you want to be sure that you will never outlive your savings, an annuity may be just what you're looking for.

Why consider an annuity? Annuities can be a key component of your overall retirement savings plan. Annuities enable you to save money on a tax-deferred basis, so all of your money can work for you now. No taxes are due until you begin to withdraw your money, which can be years later. With annuities, there is more left which may grow for you.

When you're ready to receive income, generally in retirement, annuities can provide you with a variety of income choices, including a guaranteed income that you can never outlive. In addition, if you die before income payments begin; many variable annuities provide a death benefit that guarantees your beneficiaries will never receive less than the amount contributed to the contract, less any withdrawals or fees.

There are two primary types of annuities. One is a deferred annuity, a type of long-term personal retirement account, which allows you to save and invest on a tax-deferred basis with an option to receive a stream of income at a later date. The other is an immediate annuity, which provides regular income payments right away or within a short time afterward.

Keep in mind that deferred annuities are long-term vehicles. Withdrawals of earnings from a deferred annuity are subject to ordinary income tax and may be subject to contract withdrawal charges. Because deferred annuities are designed specifically for retirement, withdrawals made before age 59½ are generally subject to a 10% tax penalty.

Why Supplement Your Retirement Savings?
Today, many investors will need to rely on their own investments to fund a comfortable retirement and protect themselves from outliving their assets.
Consider the following:

Retirement Plans Limit Your Contribution
Your employer-sponsored plan, such as a 401(k), 403(b) or Keogh, has limits on the amount of money you can contribute each year. If you are still working, you may benefit by contributing the maximum amount you can to these plans. Because your contribution is limited, however, the amount you receive at retirement is limited too. You may want to supplement this plan with a non-qualified tax-deferred annuity. Unlike employer-sponsored plans and IRAs, there is virtually no limit on the amount you can contribute to a non-qualified annuity.

Social Security and Pensions May Not Be Enough
Your Social Security and pension may provide less than half of a typical retiree's income needs. As you can see in the chart below, Social Security accounted for just 38% of the total income for retired people with incomes of $31,000 or more.

In October 2000, the average Social Security check for those age 65 or older was just $815 per month (source: Social Security Administration, 2000).

Social Security and Pensions provide only a fraction of what you may need (source: Social Security Administration, January 2003).

Life Expectancies are Increasing
People are living longer, which means your retirement assets may need to last 20 to 30 years, or more.
Inflation Can Erode the Value of Money

To maintain your purchasing power, your assets need to grow equal to, or faster than, the rate of inflation. Even if inflation averages just 4% per year, your purchasing power may be cut in half in almost 20 years.(Source: Consumer Price Index)

Only annuities provide the retirement income options that can protect you from outliving your assets. Annuities can complement your other retirement plans by providing the benefits of tax-deferred growth, retirement income options and flexibility. Variable deferred annuities also offer investment choices and beneficiary protection in the form of a guaranteed death benefit to help you build extra retirement income.

Tax Deferral Grows Your Money Faster
An important benefit of annuities is tax-deferred growth. Tax deferral means that you do not pay taxes on your earnings until you withdraw your money, usually at retirement. At that time, only your earnings are taxed. Because your earnings are not reduced each year by taxes, they can compound faster. Over time, tax-deferred compounding of your investment returns can provide a greater growth potential than a similar investment that is taxed every year.

Tax deferral is an important benefit if you are purchasing an annuity. Unlike with a non-qualified annuity, the Internal Revenue Code provides tax deferral for all IRAs so there is no additional tax benefit obtained by funding an IRA with a variable annuity.

The Annuity Advantage

Comparison of a Fixed Indexed Annuity and a Fixed Annuity

The main feature that a Fixed Indexed Annuity has over a Fixed Annuity is that a fixed indexed annuity takes the risk out of investing in the stock market. The reason for this is that, with a fixed indexed annuity, you are guaranteed by the insurance companies a minimum rate during poor market conditions. While a fixed annuity offers the same guarantee of a constant return rate, the fixed indexed annuity gives investors the opportunity to cash-in equity-based growth. While the investor may not know how much money their account will accumulate over the years, debt based instruments are always out-performed by equities.
Comparison of a Fixed Indexed Annuity and a Variable Annuity.

What makes a fixed indexed annuity superior to a variable annuity is that a fixed indexed annuity is recession proof and can protect your investment from other economic mishaps. Seeing as an important aspect of gaining wealth is the ability to manage losses effectively, a fixed indexed annuity allows you to maintain a constant return rate despite the gloomy economic state. So while variable annuities and loosing their investors money, the safety net provided by a fixed indexed annuity gives you comfort in knowing that you are still earning money.

Why People Choose a Fixed Indexed Annuity

What makes a fixed indexed annuity so attractive to investors is the simple fact that a fixed indexed annuity is guaranteed to make the investor break even, thereby giving the investor piece-of-mind. Unlike the variable annuity, which depends upon the state of the economy, fixed index annuities cannot be negatively affected by economic downturns as they are guaranteed a constant rate of return.

Also, that people can cash in equity-based growth makes fixed indexed annuities more attractive that fixed annuities. Overall, with the benefits offered by fixed indexed annuities over fixed and variable annuities, fixed indexed annuities should give investors piece of mind when investing and/or planning for retirement.

Ask Mr. Annuity: Stock Market Growth With No Market Risk

Ask Mr. Annuity: Stock Market Growth With No Market Risk: "How would you like to own an annuity that locks in stock market gains when the market is rising, but also protects your investment against a..."

Stock Market Growth With No Market Risk

How would you like to own an annuity that locks in stock market gains when the market is rising, but also protects your investment against any losses when the market is falling? That's right, your policy value is never reduced because of negative stock market performance.

Believe it or not, there is such an investment product and it's called an Equity-Indexed Annuity. With an Equity-Indexed Annuity, your return is tied to the increase in one of several stock market indexes, such as the S&P 500.

However, if the stock market goes down, you do not lose any of your money. In fact, most Equity-Indexed Annuities will even GUARANTEE you a minimum annual return (typically 3%), even if the index you invested in goes down the entire time you are invested. An Equity-Indexed Annuity is a great place to protect the money you've saved in your CDs, money market accounts, IRA accounts, etc. Or perhaps as an alternative for the money you currently have invested in stocks and mutual funds. Equity-Indexed Annuities can greatly improve your earnings potential, while at the same time keep your principal safe from market fluctuation.

Additionally, Equity-Indexed Annuities are a good option for people who already own annuities and have seen their interest rates drop substantially. Many people do not realize that you can easily trade-in an older, possibly under-performing annuity for one that better suits your needs.

This exchange can be accomplished with no out-of-pocket expense or current taxes to pay!

Just how good of an investment are Equity-Indexed Annuities?

Well, if you had bought one just before the collapse of the stock market instead of investing directly in the stock market itself, you would be a much happier person right now!

Annuities vs Life Insurance?

Annuities Systematically distributes accumulated assets Pays annuitant an income for life in exchange for a premium Reduces the financial uncertainty of living too long Premium is determined by age, sex, amount of income, class of annuity and health Life Insurance Creates an Estate Pays beneficiary specific sum at death in exchange for a premium Reduces the financial uncertainty of dying too soon Premium is determined by age, sex, amount of death benefit, type of insurance and health

Annuity Payouts: Interest Only Option

Annuity contracts offer numerous options to receive your accumulated funds as retirement income.

One option rarely used is the interest only option. At any time you can withdraw the earned inertest on a monthly basis. This allows for your account value to remain the same each month as you withdraw the monthly interest.

As an example if your account value was $100,000 and the interest paid was 5%, you could withdraw a monthly interest check of $416 without invasion of principal. The value to this option is deferring any permanent decision until a later time period. The interest income option is cancellable at any time so total control is maintained.

For mroe information regarding Annuity Payout and/or Lifetime Income Options, call us at 602.795.6270.

Contributors: Askmrannuity.com, annuity.com

Listen to the Ask Mr. Annuity Radio Program

My name is Steve Lance. I am the owner of Lance Marketing and The Ask MR. Annuity Financial Network. You are invited to listen to the Ask Mr. Annuity Radio show (http://www.kcardsofcal.com/amaradio_9-22.html), and learn about ways to use it to your marketing advantage.

Advisors Are Selling More Annuities

Here's food for thought...

According to National Underwriter’s “Russell: Many Advisors Want to Pare Client Lists,” financial advisors have an average of 255 clients.

Of those surveyed, 39% said that they have been selling more annuities to their clients.

While most of the advisors already use annuities for their clients, those who don’t seem to have little interest in transitioning to this guaranteed income product. Maybe they will change their minds as clients show more interest in lifetime guaranteed income sources.

Information extracted from a post by AnnuityFYI.

Annuities: The official retirement vehicle of the Obama administration.

Based on a recent article by RON LIEBER.

As slogans go, "Annuities: The official retirement vehicle of the Obama administration" is hardly “Keep Hope Alive,” or even “Change We Can Believe In.” But there were annuities, in a report from the administration’s Middle Class Task Force that came out this week. They are among the tools the administration is promoting as it tries to give Americans a better shot at a more secure retirement.

At its simplest -- which is how the White House seems to want to keep it -- an annuity is something you buy with a large pile of cash in exchange for a monthly check for the rest of your life.

If the biggest risk in retirement is running out of money, an annuity can help guarantee that you won’t. In effect, it allows you to buy the pension that your employer has probably stopped offering, and it can help pick up where Social Security leaves off.

“I never thought I’d have the president as a wholesaler for us,” said Christopher O. Blunt, executive vice president of retirement income security at the New York Life Insurance Company.

After all, the announcement from the White House did make it clear that the administration was looking to promote “annuities and other forms of guaranteed lifetime income.” That suggests the administration is open to other solutions, though there are not many others that are as simple as the basic fixed immediate annuity (also known as a single premium immediate annuity) that delivers a regular check for life.

As the saying goes, "any news is (usually) good news. And, as the volatility of the market produces more insecurity as to where retirement funds should be safely parked, annuities have emerged as the obvious safe harbor.

No matter what your political views, it is reassuring that Washington has taken this step toward financial responsibility.

Annuities Now Offer Long Term Care Options

In financial planning, clients love to discuss building their wealth and investments, but they often cringe when we mention any insurance protection, especially long-term care coverage .Their extreme reluctance to consider long-term care is really quite normal. Who wants to think about buying coverage for nursing home care when it can be such an unpleasant experience, and we really hope it won't happen to us?

However, most long-term care services actually are provided in a person's own home according to the U.S. Department of Heath and Human Services. Clients have many more options for their senior years if they find some way to plan for these occurrences. Up until this year people basically had only two options -- self insure or buy long-term care insurance coverage.

Beginning in 2010, Congress added another planning option called the long-term care annuity. The underlying base of a "LTC annuity" is a fixed annuity. Fixed annuities are not new -- they have been available for many years. They are guaranteed by an insurance company, the funds accrue with a competitive interest rate, and the account grows tax-deferred.

What's new is that insurance companies have built in a long-term care option into a LTC Annuity. This option is not a rider and there is not a separate premium paid by the client. The option is just an election to use the long-term care benefit if you need it. If you never need the option, your interest and principal are available for you or your beneficiaries just like a regular annuity.

To make this annuity more attractive, Congress changed the tax law so that distributions from these LTC annuities are "tax free" if used for long-term care. So you can accumulate funds on a tax-deferred basis and use them tax free if needed for long-term care. If you never need this type of care, you simply receive tax distributions as ordinary retirement income or pass them to your beneficiaries. This is an excellent opportunity to legally stiff the IRS!

Pros

• Age limitations are very liberal. People up to age 85 can purchase.
• Simple medical underwriting. There are no physicals required and most people can qualify, even if they have been denied traditional long-term care insurance.
• Tax-deferred accumulation of earnings.
• Potential tax-free use of distributions.
• You or your heirs receive any funds not used for long-term care.
  

Cons

• You need to have a lump sum to invest, usually at least $40,000.
• There are penalties if you surrender the annuity in early years.
• As with all financial options, "One size does not fit all."
• We encourage everyone to discuss their particular needs with a Certified Financial Planner to determine what long-term care options are needed and suitable in your individual circumstances. At least now Congress has given all of us an additional tax-favored option to consider.

Column by Van Sievers CFP • September 7, 2010

Fixed Index Annuities

A Fixed Index Annuity (also equity-indexed annuity) is a special type of fixed annuity contract that fuses the safety of fixed annuities with higher participation in the financial market. Strictly speaking, it is not an investment- as it is primarily an annuity contract between an annuity investor and insurer or annuity provider. Although Fixed Index Annuities represent an improvement on fixed rate annuities, they inevitably have their merits and demerits.

Guarantees
Fixed Index Annuities- like other insurance contracts- offer investors guarantees on their premiums and returns. Apart from safety assurances for contributions, Fixed Index Annuities offer investors minimum (base) guaranteed rates of return. This suggests that even though their performance is linked to an external index, the annuities are insulated from severe downturns in the market.

Market-Type Returns
A major benefit of equity-indexed annuities is that they offer returns that link to market performance through an external index (such as the S&P 500). Annuity investors on this plan can benefit from favourable fluctuations in the market while being insulated from sharp downturns. Fixed Index Annuities also offer higher returns than fixed rate annuities, CDs and Money Market Funds.

While this is an obvious benefit, the annuity contract determines how much this benefit trickles down to the Fixed Index Annuity investor. Interest rate caps, margins and participation rates are features of this contract that determine how much the annuity contributor benefits. The method of indexing can also minimize or increase this benefit. How the FIA is indexed can play a huge role in determining whether market-type returns is a token benefit or not.

Taxation
Qualified equity-indexed annuities benefit from tax-deferred growth in the accumulation phase. Tax-deferred growth with eventual income taxation is far superior to accumulation with lower taxation. The downside to this tax benefit is that tax authorities treat annuity payments and distributions as income and not capital gains. As a result, the income tax bracket is applied instead of the less-burdensome capital gains tax. However, the benefit of tax-deferred growth makes the eventual tax implications a lot more palatable.

Guaranteed Lifetime Income
One of the primary merits of an annuity is the provision of guaranteed lifetime income. The Fixed Index Annuity provides this important feature as well. As a long-term contract with an insurer or annuity provider, FIAs also bear hefty charges and penalties from insurers and/or tax authorities in the event of premature withdrawal or surrender. Some insurers even apply non-indexed rates if the annuity is not carried to maturity, which effectively cancels any benefit of having an equity-indexed annuity.

Conclusion
This is a terrific overview by D. Victor (Ezine article). If you have further questions about how Indexed Annuities can help your portfolio, please feel free to call me at 888.939.0135 .