Benefits Of A Fixed Indexed Annuity, 30 Year Expert Tom Gucciardi
Today, I, Thomas Gucciardi, Founder of Global Financial Group , will give types on simple facts about a Fixed Indexed Annuity. Call Tom Gucciardi at 954-804-4381.
WHAT IS A FIXED INDEXED ANNUITY?
A fixed indexed annuity (FIA) is a contract between you and an insurance company. similar to a CD at the bank, which is a contract between you and the bank. FIAs offer the opportunity for tax-deferred growth based in part on changes in a market index, plus the option to convert your annuity into a steady, guaranteed, lifetime income stream, all while protecting your hard-earned principal from the uncertainty of market volatility.
When purchasing a FIA, you agree to pay for it in either a single lump sum or multiple payments over time. In return, the insurance company takes the risk of market downturns to protect your annuity value and also promises to make payments from the annuity to you in a single payment or series of payments, over a fixed number of years.
Money in an FIA earns interest based on changes to the index. Annual interest is calculated using a unique formula based on changes in the performance of stocks (S&P, Dow Jones, NASDAQ), bonds (Capital Markets Bond Index), or commodities (CBUE). The index is used as an external benchmark – you do not actually invest your funds in it. All contracts are different, so call Thomas Gucciardi.
Call Thomas Gucciardi at 954-804-4381
HOW A FIXED INDEXED ANNUITY WORKS?
Generally, fixed indexed annuities (FIAs) have an interest rate floor, which is the minimum interest that will be credited each period – typically 0%, a participation rate, which is the percent of an index that will be used to calculate interest crediting, and/ or a cap, which is the maximum interest that will be credited. Together, the interest rate floor, participation rate, and cap determine the amount of interest you earn. Your interest earnings rate will always remain somewhere between the floor and the cap. It will not rise above the cap, even if the index goes higher. Conversely, it will never fall below zero, even if the index declines in value. In fact, the value of your money will never decline due to market loss for as long as it is in the FIA, although it can increase with a rising index.
Sound confusing? It is really a simple concept. Plus a low risk retirement product with guarantees. Income for life is one of the many options you have. Call Thomas Gucciardi at 954-804-4381
If you withdraw your money from an FIA before an index terms ends, the annuity may not add all the index-linked interest for that term to your account. Additionally, like many long-term financial products, like CDs or mutual funds, FIAs have a surrender fee for early withdrawal, the terms of which depend on your contract.
Contracts generally allow you to withdraw 10% of your money without a penalty( read your contract) Therefore, 10% a year is very liquid for many people. Just think , if you withdraw 10% of all your money and spend it...it will be 50% gone in 5 years. You may also reinvest the 10% each year. You must know all tax ramifications.
Tom Gucciardi, Founder of http://globalfinancialgroup.com/