Annuities

Annuities are an excellent vehicle for accumulating assets. Interest earned within an annuity is 100% tax deferred – no taxes are paid on earnings until the money is withdrawn. This can make a dramatic difference over time in total accumulations. Some annuities can even provide a stream of guaranteed lifetime income – income that can never be outlived – to provide ongoing retirement income. An array of annuities is available, some with guaranteed rates for a specified period, others with rates that adjust to reflect current market conditions. One type of annuity, called an Equity Indexed Annuity (EIA), ties its interest earnings to a stock market index, such as the S&P 500. This allows the owner to participate in stock market growth – yet these products provide a guaranteed return of principal – the owner can never lose premiums paid into the EIA.