A fixed annuity is a financial contract with an insurance company whose tax-deferred growth is designed to be a source of retirement income.  Annuities come in many different types:  Single Payment vs. Flexible Payment; Immediate vs. Deferred;  Bonus Annuities;  Multi-Year Rate Guarantees;  Lifetime Income vs. Fixed Period;  Lifetime Income with Fixed Period Guarantee;  Joint Annuities; and Equity Indexed Annuities.  Many of these types can be mixed and matched.  An annuity can even be structured to help pay the premium on a long-term care insurance policy.

An Income You Cannot Outlive
Annuities offer the opportunity to both accumulate retirement savings and to ensure that those savings can't be exhausted in retirement, no matter how long that may be. Earnings grow tax-deferred during the accumulation phase of an annuity and, if a lifetime payout plan is chosen, payments continue for life. An annuity is a personal pension plan that can be used by anyone to supplement other public and employer-paid retirement income. Longevity risk is the biggest and least recognized financial challenge facing people today, and using annuities, as part of your financial plan, can be an important part of assuring adequate assets in retirement.

Power of Tax-Deferred Growth
Earnings in an annuity, unlike most financial products, are not currently taxable as income. Earnings are tax-deferred until you actually withdraw your money. This means the money you would have used to pay taxes can remain in the annuity earning more interest. 

Tax advantages can occur at payout, too. Although income from qualified plans (such as private pension, profit sharing, IRA or similar plans) is usually fully taxable when received, non-qualified annuities use an IRS exclusion ratio that determines the taxable and nontaxable portions of the income payments. Essentially, you only pay taxes on the portion of payout that represents income earned on the annuity. That's because contributions you made to the annuity have already been taxed when they were earned.

Equity Indexed Annuities
An equity-indexed annuity is an annuity that earns interest that is linked to a stock market index. An equity-indexed annuity is different from other fixed annuities because of the way it credits interest to your annuity's value. Traditional fixed annuities credit interest calculated at a rate set in the contract. Equity-indexed annuities credit interest using a formula based on changes in the stock market index to which the annuity is linked. How much interest you get and when you get it depends on the features of your particular annuity. This feature can give you the opportunity to participate in the growth of the stock market without any stock market risk to your principle

Why should I consider purchasing an annuity?

• You want to avoid paying taxes on money until you are ready to spend it.

• You want to have an income that you cannot outlive.

• You want a guaranteed interest rate.

• You want to participate in market growth without risking your principal.

• You want income and growth to be guaranteed.

• You need to introduce more stability and balance into your asset allocation or retirement plan.

• You want to avoid probate by having your money go directly to your chosen beneficiaries.

• You want a guaranteed source of cash flow to fund a Long-Term Care insurance policy.

Can I put my IRA or 403b money in an annuity?
Yes, you can put your IRA or 403b money into an annuity.  In fact, IRA and 403b annuities are very popular vehicles for both the accumulation of retirement savings, and the distribution of retirement assets.