An annuity is a contract issued by an insurance company and usually referred to as an annuity policy or annuity contract. What makes annuities different is the tax treatment given them by the IRS.Think of an annuity as an umbrella. When money is placed under the umbrella or annuity contract, it is treated differently as far as taxes go. The money that you put in an annuity is referred to as a premium, it’s your original contribution or principal contribution. Since you already have paid taxes on it, it never again will be subject to taxation. This assumes that you haven’t purchased an annuity as part of a qualified retirement program such as an IRA, 401(k), TSA or 457 plan.The money that you put into an annuity will earn interest or receive dividend income or capital gain distributions. These “earnings”, unlike money in a savings account, mutual fund, certificate of deposit are not taxed in the year in which they are earned. Thus the “earnings” will continue to grow and compound tax free until withdrawn.
We have protected our clients. They don't lose money.When the market goes up, they go up with it. Their gains are locked in.When the market goes down, their money is protected and guaranteed. We keep it SIMPLE. They receive a reasonable rate of return and they DON'T LOSE MONEY.
Just in case you have a CD renewing soon...youmay want to see how a tax deferred annuity could really help your "Bottom Line" with
interest rates that are guaranteed, tax deferral... and other benefits.
For more Information Call: Louis Hammond 600-601-5433
