Invest in a safe way with annuities from The Robert J Stillwell Agency.
Annuities from The Robert J Stillwell Agency
The Robert J Stillwell Agency has been an insurance agency which our customers have come to trust for all of their insurance needs. Among the many insurance products offered by the Robert J Stillwell Agency are annuities. With any type of investment, individuals can have a large number of questions ranging from tax rules, to payment timelines and possible pitfalls. The best way to have these questions answered regarding your annuity needs is to contact a trusted insurance agency like the Robert J Stillwell Agency. Our expert insurance agents are standing by to provide you with assistance, guidance and ultimately the annuity which best suits your investment needs.
What is an Annuity?
An annuity is a contract between the individual and the insurance company which requires an insurance company to provide payments to an individual either immediately or in the future based on the performances on that contract. An annuity is a vehicle to save money. There are three different types of annuities; fixed annuities, variable annuities and equity indexed annuities.
How does an Annuity Work?
Each annuity type works differently. Below we outline exactly how each type of annuity functions.
- Fixed Annuities
- A fixed annuity provides a fixed rate of return on contributions to the account.
- Equity Indexed Annuities
- An indexed annuity credits the holder with an interest rate that is linked to the returns of the S & P.
- Variable Annuities
- With a variable annuity an insurance company allows you to direct your annuity payments to different investment options, typically tied to the stock market.
- A variable annuity typically has a deferred payment structure. A deferred payment structure means that an individual must wait a set period of time before receiving any payments.
Fixed Indexed Annuities
Fixed indexed annuities are investments which can provide customers with the benefit of both protection and potential growth. A fixed indexed annuity contract with an insurance company provides a steady stream of retirement income. Fixed indexed annuities provide protection with potential because they are tied to a specific index without having to purchase interests in the index which would otherwise put your principle at risk.
Equity indexed annuities provide additional interest income based on the performance of the external index. For example, if your fixed index annuity was tied to the S&P 500 index and this index increased in value, you as an annuity holder would receive a higher interest payment. However, if this index decreases in value, the fixed indexed annuitant does not lose any of their principle and still receives their guaranteed income payment.
This is why a fixed index annuity is such a popular investment option for those entering retirement. In order to discuss the particulars of a fixed index annuity at the Robert J Stillwell Agency, please contact one of our insurance representatives today.
Are Annuities a Good Investment?
Fixed and equity indexed annuities are a great investment option depending on the goal which an individual is looking to achieve. Typically, annuities are considered much “safer” and “reliable” investments. This is because annuities provide a guaranteed stream of income. Speak with an insurance agent in your area to discuss the different types of annuities and which type of annuity would be best suited for your needs.
Are Annuities Taxable?
There are numerous types of annuities, but they are all taxed the same. Annuities are tax deferred and are taxed at the time of withdrawal. The level of taxation will be dependent upon whether the annuity was purchased with pre-tax or post-tax dollars.
How Much Does An Annuity Pay?
The amount that an annuity pays per month varies greatly depending upon a number of factors including; annuity size, age purchased, date payments are started and the rates agreed upon with your insurance company. Due to this wide range of possible costs associated with annuities, the best way to get an accurate amount of annuity payment per month is to speak with an insurance agency like the Robert J Stillwell Agency.
What Happens to an Annuity When You Die?
If an annuitant dies prior to the completion of their annuity, then a cash value payment is made to the beneficiary listed on the account.
If you are considering either a fixed or equity indexed annuity, consider choosing the Robert J Stillwell Agency. The Robert J Stillwell Agency has been providing top of class service to customers for decades and are happy to provide this same level of expertise and customer service to anyone considering purchasing an annuity. In order to discuss which annuity type would be best for you, or to get a quote for payment amounts, contact the Robert J Stillwell Agency today.