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	Home About Us Attend A Seminar Become A Client Client Resources Annuities - Income Maximization Retirement Income Planning Reverse Mortgages ETFs Links	Is An Annuity Right For You? Annuities are a wise investment if you are: Seeking Principal Protection - Guaranteed, steady income for the rest of your life - Inflation Protection - Various investment options to match investment and risk tolerance levels Concerned about outliving your money - Protection against outliving your assets - Benefits to your heirs Seeing investment returns being diminished by fees - Ability to save money on a tax efficient basis What is an Annuity? A contract between you and an insurance company Four Types: Variable, Fixed, Immediate, and Index Purchased through: - A one-time, lump-sun payment, or - A series of on-going payments over time Can provide regular, periodic payments for income Amount invested depends on: - Short and long-term financial goals - Composition of current portfolio - Tax situation Investment grows tax-deferred No limits on the amount you can invest Avoids probate Creditor proof Criteria for Making an Investment Decision Guaranteed principal and interest No up-front sales charges Provides income for life Provides access to your money Reinvest earnings without taxation Avoids tax impact on Social Security income Allows you to control when you pay taxes Avoids costs and delays of probate Historical credit ratings Performance history The Answer? – A Tax-Deferred Fixed Annuity Income tax is deferred until you access your cash You earn: - Interest on your principal - Interest on your interest - Interest on the money you would have used to pay taxes Guarantees: - Return of your principal Defers tax liability until cash is withdrawn Lifetime income available - guaranteed principal Guaranteed interest Avoids high costs and delays of probate Immediate Annuities What is an Immediate Annuity? Similar to other annuity types, purchased by a premium payment from an insurance company Designed to enhance cash flow Monthly payments begin immediately Payments can last for a fixed term or for your lifetime Payment amounts depend upon: - Life expectancy - Amount invested - Interest rates Is an Immediate Annuity Right for you? An Immediate annuity may be appropriate if you are: A retiree needing increased monthly cash-flow A person with no heirs or who is not concerned about leaving an estate Someone who has set aside other funds to leave to heirs A retiree wanting to avoid the hassles of investing on one's own Index Annuities What is an Index Annuity? A type of Fixed Annuity that offers the potential to capture much of the gain in the stock market without the risk of loss. Returns are determined by the performance of an index such as the S&P 500. - Also known as Equity Index Annuities (EIA) - Other indices can be selected, e.g. DJIA, NASDAQ, Russell 2000 Investors returns are usually calculated as a percentage of the index performance. Surrender periods are usually 7 – 10 years. - Bonuses as high as 10% of the initial investment are often offered for longer surrender periods Investors give up some of the upside in return for a no-loss guaranty. - Most have a maximum interest rate (cap) and a floor Provide traditional annuity benefits. - Tax-deferred growth - Permit early withdrawal without penalty under certain adverse medical conditions Factors that can influence performance: Participation Rate - The percentage of the annual gain in the index that is credited to the account value - May or may not be guaranteed Annual Asset Fee - A flat percentage deduction from the index growth - Sometimes called "yield spread" or "margin cost" - Most Index Annuities have no Asset Fee Cap - The maximum percent of the gain in the index to be credited to the account - A few Equity Index Annuities have no cap What others have said: "If you do not want to take any risks but still want to play the stock market, an Index Annuity may be right for you." "I really like Index Annuities in markets that are going down." - Suze Orman, The Road to Wealth "A Bear-Proof Way to Ride the Market: Equity-index annuities remove downside risk." - Lewis Braham, Business Week, April 30, 2001 "Equity Index Annuity: Safe Place to Grow Your Money." - Robert Valentine, Certified Senior Advisor - SeniorJournal.com, July 16, 2005 "Although the future path of the market has yet to be walked, index annuities have proven they offer safety in bad times and extraordinary potential in good." - Jack Marrion, President, The Advantage Group - Reprinted from the Wall Street Journal Conclusion Index Annuities can offer retirees greater benefits than other investments products Are ideal for those who want to secure their savings for the rest of their life Provide market upside with no downside risk Insure optimum quality of life during retirement Common Myths About Annuities Annuities are not good for IRA's or other qualified plans NOT TRUE! Fixed, immediate, and index annuities may be very good in IRA's. All annuities have fees NOT TRUE! Fixed and immediate annuities have no fees. Most index annuities have no fees. When you die, the annuity is gone NOT TRUE! Your heirs will inherit your fixed, variable, or index annuities. Immediate annuities stop at time of death unless you choose a set, period certain. Annuities are not meant for seniors NOT TRUE! Annuities are specifically designed for seniors and retirees. You should not die owning an annuity NOT TRUE! We often hear this ridiculous statement from life insurance salespeople. Since annuities grow on a tax-deferred basis, your heirs will pay ordinary income tax on the profit,(can be "stretched" or multigenerational) which is compounded because of the tax deferral. Annuities vs. Other Investments Conclusion Your Financial Plan should protect you against: - Outliving your savings - Risking your principal - Inflation - Taxes Annuities can offer seniors - Benefits to insure optimum quality of life - Greater benefits than many other investment options - Secure savings for the rest of your life Bonus – Many annuities offer up-front bonuses that add even more to your savings Is an Annuity Right for You? Call toll free: 1-866-259-5020 Arnold Financial Group(AFG) provides financial services to qualified clients. Any discussion of investments and investment strategies of funds (including current investment themes, research and investment processes, and portfolio characteristics) represent the views of AFG at the time of publication. Any expression of opinion is subject to change without notice and are not intended to be a guarantee of future events. This document is supplied by AFG for information only and does not constitute a solicitation to buy or sell securities. Although information and opinions in this document have been obtained from sources believed to be reliable, we do not warrant the accuracy or completeness and accept no liability for any direct consequential losses arising from its use. The information is representative of AFG viewpoints at the time of publication. Not all products and services are available at all locations and not all instruments are suitable for all investors.
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