ANNUITIES

Fixed Indexed Annuities (FIA)

Fixed Index Annuities, also known as equity-indexed annuities base their annual interest rates on the performance of certain pre-determined indexes, such as the S&P 500. It’s a way to balance the risks and rewards, carrying lower risks than market investments and higher potential than traditional fixed annuities. The interest rate won’t sink below a preset amount. Any gains earned will be locked in and it will never lose its value. These annuities often have enhanced income riders attached which will pay a lifetime income based on values significantly higher than the invested amount.

Single Premium Immediate Annuities (SPIA)

With a Single Premium Immediate Annuity (SPIA) the annuity holder begins receiving payments within a year after purchasing it. The payments can be for a fixed period of time, or for the lifetime of the annuitant.

Multi-Year Guaranteed Annuities (MYGA)

This is the option with the least risk and the most predictability. Multi-Year Guaranteed Annuity (MYGA) sometimes referred to as fixed annuities, come with a guaranteed, set interest rate for a fixed number of years, that doesn’t vary beyond the terms of the contract. While other investments might soar or dive, the fixed annuity is steady. At the end of the predetermined number of years, the interest will reset, often at a lower rate.

Enhanced Income Fixed Index Annuities

Fixed Index Annuities that have a low-cost rider, typically under 1% that will provide enhanced lifetime income.  In many cases the enhanced value is twice to accumulated value of the annuity.  The income provided will not run out no matter value of the underlying annuity. The income rider can be single or joint and works with qualified and non-qualified accounts.

Accumulation Focused Annuities

These are fixed index annuities with a low cost rider that is designed to boost the indexes and fixed accounts for the annuity.  By doing this it increases the growth potential of the annuity at a rate that exceeds the cost of the rider.

Bonus Annuity

These are Fixed Index Annuities that have a 'Bonus' on the premium. In the case of a single premium annuity the bonus is on that first premium. With a flexible premium annuity the bonus is added all new premium placed within a set period of years, which are typically within the first 5 or 6 years. These annuities provide an initial boost to the growth of the annuity and can make up situations such as recent market losses.

Group Annuities

Annuities that can be utilized to fund group retirement plans, such as a 401(k). They are unregistered variable annuities that can be marketed without a securities license.

Annuities with LTC Hybrid Coverage

Annuities that perform as a normal annuity, either a fixed annuity or a Fixed Index Annuity. They may not have the same robust growth as other annuities, and they do not have any enhanced income features. They do have another component to them in that they provide traditional long term care protection.

Variable Annuities

These are annuities, that in addition to having a fixed interest option, will offer one or more mutual fund investment options for cash accumulation purposes. These types of annuities do not offer safety of principal and earnings, as they have full market participation. While they can promise greater returns than other types of annuities, they are exposed to full-market risk and can lose value, including loss of principal.