What is an Annuity and how is it secured:

What exactly is an Annuity?

Annuities provide insurance against the risk of outliving your money after you stop working.

You get the potential to grow your savings and create guaranteed income for life so you can retire your way.

While they seem to function like an investment (that is, you put your money in and accept the risk of whether it increases or decreases), many are actually insurance contracts.

In general, it's insurance that you receive certain guaranteed payments at retirement.

An annuity is an investment/insurance product account and contract with a multi billion dollar insurance company, that provides safe guaranteed, tax-deferred growth of your retirement nest egg. Annuities are considered extremely low-risk, and provide guaranteed monthly income when you retire. There are many types of annuities with varying features & benefits. In fact over the years many new and exciting concepts have developed using annuity products. These include: fixed, variable, immediate, deferred & hybrid. We explain all the details that help you understand the various types of annuities and provide illustrations to you advising which products works best for you based on your retirement plans.

Annuities are designed for people who want security, peace of mind, and a guarantee of principal and interest.

They want a guaranteed  monthly income when they retire - annuities are NOT a high-risk / high-return investment.

They are considered to be the mainstream of conservative retirement planning - over $225 billion in annuities have been purchased in the past 12 months alone, and that number will grow as millions of Americans run for cover in the next year. (2024)

INSURANCE COMPANIES ARE REGULATED DIFFERENTLY:
 

1. Insurance companies are regulated completely different then banks or stock market companys are. Most people do not know that every insurance company is "forced by state insurance regulators" to set aside $1 for every $1 invested in annuities. Banks often fail because they take $1 and make $10 in loans that go bad. Sadly, 5 banks have failed during the current adminstration. In over 115 years Annuities have never failed!

2. Guaranteed income for life:

Annuities can fill in the gaps when social security, pensions, and other retirement accounts don't provide enough retirement income. Annuities allow you to take a lump sum today and create a steady stream of income paid monthly, quarterly or yearly. We design and provide illustrations based on what annuity works best for you based on your needs, your goals, etc. 

3. Reasonable returns :

Traditional fixed annuities provide a safe alternative to bank CDs and savings accounts. Some uncapped index annuities have earned very nice returns. You earn a portion of the market upside without risking your principal. Some of the gains, none of the losses. It does not get much better than that? 

4. Tax-deferred growth - Annuities offer TRIPLE compounding on your interest. Earn interest on your principal, interest on your interest, and interest on the money normally lost to taxes each year.

5. Long-Term Care Benefits - Some annuities offer you long term care benefits upon your initial deposit and life insurance with an optional rider. Everyone qualifies regardless of health. This can save your heirs a lot of federal taxes if planned correctly. 

6. Leave a Legacy - You can leave a love one, a charity, or whatever you choose- a monthly, quarterly, or annual check if you so wish.. The insurance company will be there to make payments based on your instructions listed in the contract.

With an Annuity from Natural State Advisors, you can provide your loved ones with a death benefit that is part of your annuity contract.

We can provide advice on strategies that could reduce the taxes you leave your beneficary.   

7. No fees - No Broker charges-No yearly taxes due while your saving!