Ready or not, here comes retirement! Have you considered the safety and security of Annuities?

According to Investopedia.com…
“(An Annuity is) A financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. Annuities are primarily used as a means of securing a steady cash flow for an individual during their retirement years.”

They are also seen as an excellent alternative to CD’s for a number of reasons including;

• Guaranteed Principal
• Tax-deferred accumulation
• Guaranteed Growth

Types of Annuities

• Immediate or Income Annuities
• Deferred Annuities
• Split Annuities

Immediate or Income Annuity

An Immediate or Income Annuity is used primarily to provide you with an immediate and steady stream of income that is guaranteed to last for as long as you live. It’s purchased with a single premium payment and your income payments typically begin in a month; you can defer your first payment for up to a year. Payments will continue as long as you live or for a guaranteed period of time that you select.

Transfer assets to purchase an income annuity - transfer funds from an IRA, Roth IRA, or 401(k), 403(b) or 457 account.
Advantages Concerning IRS requirements - offers access to tax-deferred retirement assets prior to age 59 ½ without paying penalties to the IRS.
Income Payments can be Fixed or Variable - payments you receive can be fixed, or you may choose to have payments increase by a set percentage each year.
Medical Underwriting Reduces Premium Cost - Some people have medical conditions and can benefit from being medically underwritten to receive a rated age that will enhance your annuity benefit.

Cost-efficient means of wealth transfer.

Wealth accumulation within a tax-favored vehicle.

Deferred Annuities

A deferred annuity is a type of personal account intended for long-term savings goals, like retirement. Unlike an immediate annuity, income payments are deferred until a future time. When you’re ready, you can convert your account balance to an income stream that you can’t outlive (or another income option). Or, you can defer that conversion indefinitely, and simply make withdrawals when needed.

You pay no current tax on earnings within your annuity (this is called tax deferral). Your earnings, when withdrawn, are subject to ordinary income tax. Also, withdrawals of earnings prior to age 59½ are generally subject to a 10% tax penalty (25% for certain SIMPLE-IRA distributions).

When you make withdrawals, early withdrawal charges may apply; these typically decline over the years, finally reaching zero. Also, most deferred annuities offer access to some of your money each year without charge.

Deferred annuities can be a great choice for building a tax-deferred retirement nest egg - especially if you want to save more than you might with IRAs and 401(k) Plans.

Deferred annuities have two phases:

savings and investment, where your earnings accumulate tax-deferred and you generally have access to your money* income, where you convert your account balance into a guaranteed stream of income that you can live on the rest of your life; any remaining assets can be invested to grow your overall portfolio.

Deferred annuities can be fixed, variable, or fixed index.

FIXED ANNUITIES

Fixed annuities have a fixed rate of interest for a specified period of time. They are generally selected by consumers who are planning for retirement and are interested in a predictable rate of return, as the interest rate will never fall below specified minimums. Fixed annuities offer a guaranteed return of principal based on the claims-paying ability of the issuing insurance company.

To learn more about how fixed annuities can help you plan for retirement, contact your financial representative or a financial representative associated with the Genworth companies.

VARIABLE ANNUITIES

A variable annuity is a long-term investment designed for retirement purposes. Combining the worlds of insurance and investing, a variable annuity is best described by its two phases: investing money, and then receiving future payouts.

During the investment phase, which runs from the date you invest until the date you begin receiving annuity payments, you'll choose how your investment is allocated across a number of diversified investment choices.

During the payout phase you may choose to remain invested in those portfolios, or reallocate to receive a fixed rate of return.

Regardless of how your assets are invested throughout this phase, you'll have the opportunity to receive guaranteed annuity payments for the rest of your life (or your spouse's), with the payments based on the contract value at the time of annuitization. All guarantees are based on the claims-paying ability of the issuing insurance company. Guarantees do not apply to the performance of the underlying portfolios, which will fluctuate and may lose value.

Variable annuities are sold by product and portfolio prospectuses. The prospectuses contain information on the investment objectives, risk factors, fees and charges, as well as other important information about the product and investment companies, which should be carefully read and considered before investing. You can obtain prospectuses for variable annuities by contacting your financial representative.

Variable annuities from the Genworth family of companies are underwritten by Capital Brokerage Corporation (dba Genworth Financial Brokerage Corporation in MN, IN, NM and TX) - member FINRA/SIPC.

FIXED INDEX ANNUITIES (FIAs)

FIAs are unique products that offer the guarantees of fixed annuities combined with the opportunity to earn interest based on potential market index gains – without directly participating in the market. Since this is a fixed index annuity, your money will not be affected by market losses. FIAs can be important financial tools that provide earning potential while keeping principal safe from market fluctuation. FIAs offer a range of features that may provide:

• Bonuses*
• Various crediting methods
• Allocation options: to give you choices for your money

North offers a wide variety of annuities with various features and benefits. We go through a strenuous selection process to ensure that the third party insurance companies we choose to recommend will offer the highest quality in product and service to our clients. If you're concerned about the cost of a retirement that may last 20 to 30 years and you're already contributing the maximum to a 401(k) or other retirement plan at work and/or an IRA, then talk to a North Wealth Advisor about annuities.
*bonus annuities may carry higher fees and charges than annuities without the bonus feature.

Guarantees are backed by the financial strength and claims paying ability of the insurance company.

Enter here to receive a complimentary copy of the;

BUYER'S GUIDE TO EQUITY-INDEXED ANNUITIES
Prepared by the National Association of Insurance Commissioners**
**The National Association of Insurance Commissioners does not endorse any insurance company.

Split Annuities

Discover the split annuity to generate income and rebuild principal.

The split annuity is a solution that utilizes two or more annuity products in a strategy where one annuity (generally a single premium immediate annuity or SPIA) is designed to generate a monthly stream of income while a second annuity, generally a single premium deferred annuity, is structured to rebuild the original starting principle over set period of time. The goal is to restore the original principal and then restart the process with prevailing rates and current competitive products.

Guarantees provided by annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. Indexed annuities are not registered securities or stock market investments and do not directly participate in any stock or equity investments. Market Indices do not include dividends paid on the underlying stocks, and therefore do not reflect the total return of the underlying stocks; neither an Index nor any market-indexed annuity is comparable to a direct investment in the equity markets.

This site is published for residents of the United States only. Licensed agents and representatives of North Wealth Insurance Agency, Inc. may only conduct business with residents of the states and jurisdictions in which they are properly licensed. Therefore, a response to a request for information may be delayed. Not all of the products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact the North Wealth Insurance Agency, Inc. Compliance Department at 858-384-5700.