WHAT IS A FIXED ANNUITY

AS MENTIONED, IT IS THE CLOSEST TO A C.D. IN A BANK THE INSURANCE INDUSTRY CREATED. YOU OPEN UP AN ACCOUNT (AN APPLICATION). YOU CHOOSE QUALIFIED OR NON-QUALIFIED DEPENDING ON WHERE THE MONEY IS COMING FROM TO PUT INTO THE FIXED ANNUITY.

QUALIFIED MONEY IS YOUR ROLLING MONEY OVER FROM AN IRA, TSA, 401K. PENSION MONEY IS QUALIFIED MONEY (YOU HAVE YET TO BE TAXED ON SUCH MONIES).

NON-QUALIFIED MONEY IS MONEY FROM A C.D., A STOCK BROKERAGE ACCOUNT, MUTUAL FUND MONIES, INHERITED MONIES. THIS MONEY HAS ALREADY BEEN TAXED SO IT’S NON-QUALIFIED! THEN YOU DECIDE LIKE YOU DO WITH A C.D. HOW LONG YOU WANT TO LEAVE YOUR MONEY IN A FIXED ANNUITY. (THE AVERAGE TIME IS ABOUT FIVE TO EIGHT YEARS, BUT THE LONGER YOU LEAVE IT, THE HIGHER THE INTEREST RATE YOU CAN EARN (USUALLY) AND LIKE A C.D. IF YOU CANCEL THE CONTRACT BEFORE THE END OF THE AGREED TIME YOU WILL GET A PENALTY AGAINST YOUR MONEY. ALSO THE INTEREST RATE YOU EARN IS NOT TAXABLE UNTIL YOU WITHDRAW IT AND MANY INSURED WILL LEAVE A FIXED ANNUITY ALONE FOR YEARS ON YEARS.

IT ALSO HAS SOME BENEFIT IN YOUR ESTATE, A BANKRUPTCY, AND SEVERAL OTHER CATEGORIES INVOLVED IN COURT AND GOVERNMENT ACTIONS. A FIXED ANNUITY IS A GOOD TOOL TO HAVE IN YOUR INVESTMENT TOOL BOX!

YOU CAN USE THIS AS AN IRA, TSA, ROLLOVER INTO ACCOUNT AS WELL AS 401K MONIES.

January 22nd, 2013 by THE ONE STOP INSURANCE SHOP