Indexed Annuities

Indexed Annuities

Does your retirement account have all of the following features?

  • NO management fees.
  • Guaranteed minimum interest rate, principal is protected and gains are locked in.
  • Premium bonus offered on certain products.
  • Opportunity for upside growth within the indexed account
  • Up to 10% penalty-free withdrawals annually (after the first 13 months).
  • Surrender penalties for early withdrawals may be waived if confined to a skilled nursing facility or hospital.

Imagine the peace of mind you would feel if market crashes were someone else’s problem, not yours. 

Have you been told your whole life that the best way to save for retirement is to gamble it all in the stock market?  You wouldn’t be alone.  Whether you put your faith in individual stocks, bundle them together in mutual funds or simply trust your financial advisor to figure it all out for you, many times the risk is the same.  Securities are anything but secure.  Your money is subject to market volatility, corporate shenanigans, or any number of things completely beyond your control that may cause you to lose some or all of your hard-earned money.  If stock market crashes and “corrections” teach us anything, they teach us markets have no guarantees.  How many times have you turned on the news and heard, “The Dow closed down today erasing a year’s worth of gains.”  If you are heavily invested, that means that not only did you lose possibly significant sums of money, but you also lost all the time it took to make it.  What’s more, you still have to pay fees to your advisors even though your account lost all that money, (you pay them whether they make you money or lose it).

Perhaps you are small business owner.  While that is admirable, (we are small business owners too) is all your hard-earned capital being poured back into your business?  What if the marketplace changes or something happens to your ability to produce?  Are you setting money aside for a personal emergency or life event?   Are all your eggs in one basket or are you diversified enough to handle rough times?

What if there was another way?  What if you could participate in the gains of a given market or index without direct exposure and therefore be protected from loss?  What if the worst possible outcome was to break even?  What’s more, what if you have room for guaranteed growth and access to funds right away in the event of certain life-altering circumstances?

Annuities are often a great vehicle for people who are either risk averse, wanting to diversify their portfolios or simply looking to protect their assets from loss.  They can often be a great vehicle for individuals who would otherwise like the protections of a life insurance policy, but may not qualify for coverage.  They can work like most retirement accounts, or they can guarantee you a lifetime of income and may even be passed to designated beneficiaries should you pass on.  It’s up to you.

Annuities may be structured for deferred taxation in qualified plans or as a tax-free income generating vehicle as a Roth IRA.

Annuity contracts are often misunderstood or misrepresented in the marketplace, so where you get your information matters.   Not all annuities are created equal and different rules apply depending on how you handle them.  Make sure you speak with someone who knows and understands annuities and how to set them up properly.


Neither Legacy Accounting and Financial Services, PLLC, nor any of its affiliated agents are attorneys or securities advisors. For specific tax, legal or investment advice, please consult with the appropriate professional. Past performance is not a guarantee of future returns.