Benefits of an Annuity
Annuities are an excellent tool to help you plan
for your financial security. Fixed annuities offer a variety of benefits including
tax-deferred growth, ability to avoid probate, and lifetime income.
Tax-Deferred Growth
Tax-deferred annuity growth allows your money to grow faster because
you earn interest on dollars that would otherwise be paid as taxes. Your
principal earns interest, the interest compounds within the contract, and the
money you would have paid in taxes earns interest.May Avoid Probate
Annuities offer the ability to name a beneficiary, which may
minimize the expense, delays, and publicity that comes with probate. Your named
beneficiary may receive death proceeds as either a lump sum or monthly income.Lifetime Income
An immediate annuity can provide you with a guaranteed income
stream with the purchase of a tax-deferred annuity. You have the ability to
choose from several different income options, including life or a specific
period. With non-qualified plans, a portion of each income payment represents a
return of premium that is not taxable, reducing your tax
liabilities.
At McLeod Agency we understand that, depending on your
individual situation, you need the ability to choose whatever type of annuity
fits you best. With McLeod Agency, you have the ability to choose:
- Traditional Fixed Annuity – Offers a
declared fixed interest rate that is guaranteed for a specific period and
guaranteed to never go below a specific percentage. - Index Annuity – Interest rate credited to
your annuity contract is linked to specific market indices that you can choose
on an annual basis. Once the interest is credited you are guaranteed that it can
never go down based on future market fluctuations. - Immediate Annuity – You are guaranteed an
income stream ranging from a specific period of time to your entire life. An
immediate annuity offers a solution to the problem of outliving your money.
