All About Annuities and Retirement
Retirement Annuity Options and Retirement Annuity Choices in Washington D.C.
Annuities for saving and retirement in Washington D.C., District of Columbia
District Annuity Resource offers Annuities in Washington D.C., District of Columbia. It is important to know about the differences that each Annuity product has to offer and below you will learn some of the differences.
An annuity is a long-term savings plan that can be used to accumulate assets on a tax-deferred basis for retirement and/or to convert retirement assets into a stream of income. Issue ages are from 0-80 on most contracts so annuities can be used for many purposes from college savings, wealth protection, retirement planning, ira and 401k rollovers and creating income for life.
While both are insurance contracts, an annuity is the opposite of life insurance:
- Life insurance provides financial protection against the risk of dying prematurely.
- An annuity provides financial protection against the risk of living too long and being without income during retirement or other life event.
There are three basic types of annuities, depending on whether you need to accumulate assets for retirement or whether you’re at or near retirement and interested in creating a lifetime retirement income stream:
- D.C. Deferred Annuities ( Fixed Annuities, Fixed Indexed Annuities)
- A deferred annuity has two distinct phases: the accumulation phase and the income phase.
- During the accumulation phase, you contribute premiums to the annuity, where they accumulate on a tax deferred basis until needed for income purposes.
- During the income phase, the value of the annuity is converted into income payments.
- D.C. Immediate Income Annuities
- An immediate income annuity is purchased with a single premium and income payments begin immediately or shortly after the premium is paid. Immediate Annuities are used to turn a large sum into a life time income stream like transferring a large pension, or part of it. They also can be used to spread out a tax burden over a long period of time due to a sudden taxable windfall. Most lottery commissions use Income Annuities to pay out winnings over 20-30 years.
- D.C. MYGA Multi Year Guaranteed Annuities
- Multi Year Guaranteed Annuities are similar to Bank CD’s. Insurance companies offer MYGA’s with set guaranteed interest rates for periods of time ranging from 2-10 years. These annuities are ideal for laddering strategies where you know how long deposits are kept and exactly what returns you are receiving. These types are normally non qualified and starting deposits range from $5-10K for initial deposits. Issue ages are also ideal with issue ages from 0-80 years old.
How much do I need to start an Annuity?
Most carriers have two types of plans. Qualified and Non Qualified. To start an Annuity, you just need to understand the product, meet suitability and deposit $2k for Qualified plans and $10k for Non-qualified plans. Qualified contracts can come from a partial or full rollover, and Non-qualified needs to be verifiable cash.
Steps towards your Annuity and Income for Life in Washington D.C.
Steps to take for your Fixed Annuity, Fixed Indexed Annuity, or Immediate Annuity
Steps to take for your Fixed Annuity, Fixed Indexed Annuity, or Immediate Annuity
Maryland Annuity Resource was started to be educational to all investors. It does not take much to start yourself on the path to lifetime income. We recommend these steps in discovering products, knowing its features, and proceeding through contract issue.
- What are your goals?
- Find a product to match your goals
- Find a carrier that offers what you need
- Choose a term for your annuity
- Choose an income rider
- Read and understand brochures and illustrations
- Finalize your choices
- Complete Application
- Make it through suitability
- Free Look your contract
- Contract Issue and Acceptance
- Yearly Index Asset Allocations
- Enjoy Life Time Income
What are your goals?
Annuities are for everyone that wants to save money and receive a return for that savings. Issue ages for annuities are age 0-80. So no matter what age you are, you can start saving with an annuity and start building your life time income stream.
Just out of college and pressured into your employer plan. Go ahead if there is a match. But think about if you are going to work there the rest of your like. Start your own personal pension with an annuity.
Newly married and saving for a home. Paying off student loans, well they are not going anywhere and we say to pay yourself first and create a nest egg for your future. Bills will always be there and there will always be bills. Create a bill that creates a lifetime income stream when you decided to retire with an annuity.
Over 40 and close to retirement, your employer plan not doing so well. You can rollover your plan to a personal pension plan and since you are over 40 you qualify for income riders that just amplify your earning potential within annuities.
Close to or in Retirement? Not sure if your money will last? We can show you with annuities that you can create an income stream that you cannot out live. There are also spousal continuance provisions on lifetime income for your spouse.
Grandparents that want to give a gift to grandchildren. Start a college savings non qualified annuity to ensure your little darlings have money for college. You are the owner and they are the annuitant. That keeps your kids from touching the money. Its for them.
Know your goals and we can guide you to the right path of savings and lifetime income.
Find a Product
There are so many products out there, you need someone to help your narrow down what you actually want and need. There are many types of annuities that fit every life stage. Fixed Annuities are used as fixed investments for laddering strategies. Fixed Indexed Annuities are used for many other options besides retirement. Immediate Annuities create an income stream in about a month. So please goes through these steps and we are here to help guide you.
Find a Carrier
All Carriers are not created equal. There are ratings agencies out there that impose ratings on financial strength of Insurance companies. It is vitally important to know about these ratings and choose a carrier with the highest ratings possible.
Do you want a woodworker to build your cabinets or a master carpenter? Same thing.
We can help find carrier specific information and provide that to you upon request.
Choose your Term
This section kind of relates to know your goals. Your annuity term is important because most carriers impose surrender charges for canceling an annuity before its maturity. You do not have to deposit a whole lump sum into one product, split it up and maximize liquidity in case of emergencies.
Choose an Income Rider
We love income riders. These are options to fixed indexed annuities and for a nominal fee each year, the insurance company will guarantee life time income and credit interest based on the account value on top of the rider account interest rate. This is the essence of compounding interest on interest and we will always recommend anyone over 40 to look closely at income riders.
Brochures and Illustrations
We will provide you brochures and illustrations of hypothetical amounts. These are the lowest actual amount we can calculate for you based on rules and regulations. We never know what an index or crediting method will do in the future so what we provide to you is bare minimums.
We want and urge you to read, understand and know everything in the brochures and illustrations we provide because after all it is your money and our reputation at stake.
We strive everyday to bring a better image, name and reputation to the annuity industry because we believe in the products and features. Also if you have something bad to say, don’t say it all unless its true. We know people are lazy and want us to do all of the work, but for this you have to do your fair share.
Finalize your choices
You have made it this far and we urge you to go back through all of the details of each product, each carrier, each contract option and finalize your choices. Make sure you know about all of things that will help you create life time income. Ask all of the questions again and we will make sure you have all of the answers. That is why we are here.
We would actually complete the application for you, and in front of you. You will need all of the information about you, your spouse, the annuitant, index choices, crediting method choices, beneficiaries, and the initial deposit.
For Qualified Annuities, you can either request a check from your current plan, which you have 60 days to deposit or incur taxes. The other option is to fill out a simple form giving permission to do a transfer to the new account. Your choice.
For Non Qualified Annuities, these funds can be in check made payable to the Insurance company. We do not accept cash.
We will complete the application, collect premium if any, sign the application, leave you a copy and send it off for approval. Its that simple.
Make it through Suitability
All annuities have suitability requirements that have to be met. The funds have to be qualified or non qualified and come from a reputable source. You will have to disclose your investment history and knowledge of investments to the new insurance company and the funds cannot be proceeds of a reverse mortgage. To discuss further suitability requirements, please contact us anytime.
Free Look your contract
All Annuity contracts have a Free Look period for you to examine the contract to either accept it or reject it. If you accept it, you have an annuity. If you reject it, all of your initial premium will be returned to you or your account from where it came from. The free look was designed to give you extra time to make sure the annuity is what you really want. Once the free look expires, you have an annuity from the original contract for which you applied.
Contract Issue and Acceptance
You made it this far. You have accepted the contract and you are on your way to lifetime income. Please tell your family that you have an annuity, and please keep the contract in a safe place. I would strongly suggest reading it again and again until it finally sinks in. Remember, you have chosen an investment vehicle and in about 11 months, you will have to make a choice again for index asset allocation only if you purchased a fixed indexed annuity. If you have an immediate annuity, your payments will be there soon and for life. If you have a fixed annuity, well you don’t have to do anything until the end of your term so sit back, relax and earn compounded interest.
Yearly Index Asset Allocations
for Fixed Indexed Annuities, you will have a 30 day window each year to change your index asset allocations. We expect to get a call or email from you at this time where we can advise our recommendations and then you can make an informed choice after your due diligence. We can help examine your choices and tell you what we have seen throughout the industry that year. However, the choices are ultimately up to you and we will help any way we can.
Enjoy Life Time Income
We want to congratulate you on your steps to life time income. We thank you for your business and we appreciate all of your questions. We want to know how it goes and how you feel. We enjoyed helping you and want you to spread the word as well.