GMR 160: How to Create Protected Lifetime Income

Show Notes

Today’s Annuity: A Tool to Create Protected Lifetime Income

What are annuities?

An insurance product

About a quarter trillion sold in the US each year

Annuity companies are highly regulated

Benefits of Annuities

Tax Deferral

Principal Protection

Unlimited Contributions for Non-Qualified Annuities

Ability to Be Swapped Tax-Free

Probate Avoidance

Access to Cash When Needed

Offset to Longevity Risk

Guaranteed Protected Income*

Death Benefits

Nursing Home, Long-Term Care, and Terminal Illness Benefits

Types of Annuities

Fixed Annuities

Variable Annuities

Buffered or Structured Annuities

Fixed Indexed Annuities

Immediate Income Annuities

Deferred Income Annuities and QLACs

Major positives and negatives to buying annuities

The Positives

 Produce higher returns than many other fixed-income options

 Option for guaranteed lifetime income

 Offer a variety of payout options

 Tax-deferred income accumulation

 Can have guaranteed/predictable rates of return

 Can have principal protection and no risk of principal to market volatility

 All 100% of premiums work to generate interest

Available contract riders

The Negatives

 Some products have fees and charges

 Restricted access to cash

 No capital gains tax rates on earnings

 Contractual bonuses come with strings attached

 Additional income taxes for withdrawals prior to age 59-and-a-half

 No additional tax benefit for qualified funds

Complexity

Where can you buy annuities?  How difficult is it to purchase the product?

The Places You’ll Look – The Purchase Channels

Be Sure to Ask Key Questions to Ask Before You Buy

The Five Steps to Purchasing An Annuity

Resources

Harry N. Stout Website - www.financialverse.com
Today’s Annuity Products: A Tool to Create Protected Lifetime Income
Financial Verse Books by Harry N. Stout
Budgeting tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com