on what you would normally pay in income taxes. Unlike CD and regular MF,
regardless if you use money from the CD or not, if your MF shows a loss or
you sell any share or not, you have to pay tax on annual basis. In Equity
Index Annuity case, you don't pay taxes within the contract period until you
start withdrawal or taking income. One exception is if you own a Roth IRA in
an Equity Index Annuity, then you don't pay any taxes when all conditions
Benefit 2, Premium Guaranteed: It's the safety and protection of your premium. The
only time you will have surrender charge is if you surrender before your contract
ends or you will get penalty if you take more than the allowable free withdrawal
amount, just like the penalties from taking money too soon from your CD.
Benefit 3, Upside market potential without direct market participation: You earn interest
based on the upper movement of indexes. Besides the fixed interest option,
there are several index crediting methods to choose from.
Remember in the 1st Safety w/ Growth concept video, you've seen the
hypothetical example on how you can lock in the annual gain by the chosen
indexes and eliminate the market downside. In doing so, you are able to
not only earn interest on premium, also earn interest on your interest as well.
Equity Index Annuity provides an opportunity to potentially earn more interest
than traditional fixed annuity and other safe money alternatives.
What goes up does not need to come down, that's why we call it ‘A Safer
Money Solution', so you can get potential of equity index-linked growth
without any risk. You don't have to lose money and play catch up games.
Benefit 4, Liquidity: You have up to 10% penalty free withdrawals each year after the
first contract anniversary.
Benefit 5, Potential to avoid the expenses and delay of probate.
In choosing a good Equity Index Annuity, there are three more additional benefits:
1. You will get flexibility of premium and income options or income rider including
lifetime income plan, if you choose to have one.
2. You may qualify for incentive/ bonus-matching program. It can help you recoup some
of your losses with your previous account or boost your new EIA account from day
3. You have NO sales charge to pay.
I hope the information I shared with you, helped you with better understanding on how Equity Index Annuity works. But it won't work for you unless you apply this Safety with Growth concept in your financial life. If you are satisfied with your financial results you have, then keep doing what you've been always doing. But if you have been searching for a better solution, we want to help you build a case design for your particular needs at No cost to you.
Wouldn't it be nice to stop worrying about losing money, not beating the inflation or running out of money? Please file out the Case Design Questionnaire (link) and book an appointment with us for a no-obligation consultation. You have everything to gain and nothing to loss. Thank you for your attention.