stability you can trust

income you can count on

These days, with all of us living longer, you need to make sure your money and financial portfolio are there when you need them. In a well constructed retirement program, an annuity may be a great supplement to your other investments to help ensure that you won't outlive your savings. At Legacy, we offer you professional insight and help you choose the appropriate annuity plan to fit your lifestyle - present and future.

 

An annuity is a contract between you and an insurance company where you make one or a series of payments and the insurance company agrees to pay you an income. The payments can start immediately or later for a specified time period. The biggest benefit of annuities is tax-deferral, meaning your principal and interest compounds and grows without any current income tax.

 

Down the road if you're using an annuity to supplement your retirement income, you can choose a variety of payment options. You may want to receive the full value of your annuity all at once or you may opt to take distributions over time. In fact, you can even choose a plan that allows a guaranteed income for life. Legacy Banks will help you understand the different types of annuities and help you decide which is right for you and your future.

 

Types of Annuities
Tax-deferred annuities allow your investment to grow and compound without any current income tax due until a distribution is taken. There are three basic types of tax-deferred annuities - fixed, fixed index, and variable. All tax-deferred annuities offer various distribution options including lifetime income streams.
Fixed annuities earn a fixed interest rate for a specified period of time.

Fixed Index annuities offer participation in stock market index performance (i.e.. S&P 500). These annuities offer upside potential of positive market performance with downside principal protection in the form of a guaranteed return or principal amount in the event of poor market performance.

 

Variable Annuities are invested in mutual fund like sub accounts. Overall performance depends upon of the underlying sub accounts selected in ones portfolio, which vary from conservative to aggressive. Many variable annuities offer income guarantee options that may allow one to offset some of the risk of investing.

 

There are also Immediate annuities which are designed to offer a regular, guaranteed stream of income in exchange for a lump sum of money (much like a pension). There are many options available regarding how long the income stream will last from a period as short as 5 years to one’s entire lifetime, and there are also various survivor options to choose from. Immediate annuities may offer allow one to establish a stable income to cover fixed expenses allowing one to be less worried about potential fluctuations in interest rates or investment returns on the remainder of their investment portfolio.

Contact LPM today at 413-445-3526 and see if an annuity is right for you.