Product Options
All wealth accumulation & protection instruments can be confusing, that's why we take extra time with you making sure that you understand the pro's and con's of each product. If you plan on using these financial vehicles, let us help you pick the right one, not just one that "seems" the best for you!
As pensions are phased out, and the social security system is overworked, the security of guaranteed lifetime income is more and more important. Yet, most people don't have a plan aside from hoping for the best with what's in their 401k's. Hope isn't, and shouldn't be your financial plan. We help people through the analysis phase before it reaches the paralysis phase.
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An annuity can help you secure lifetime income- but only if the annuity fits all of your financial goals, so picking the right one can be a hassle and costly mistake... unless you work with us. We make the process simple, like it should have always been.
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Whether you're seeking guaranteed income during retirement or aiming to pass on wealth efficiently, we've got you covered. Explore the different types of products we use to accomplish various goals and discover how they can form the cornerstone of your financial strategy.
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We strive to simplify the complexities of annuities, recognizing that not all of them are created equal. Much like comparing a sports car to a minivan, both having wheels and a steering wheel, the functionalities differ significantly. It's crucial to define your objectives, understanding what you want from an annuity. By establishing clear short and long-term goals, you can better pinpoint the annuity that aligns with your needs.
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Educating yourself about annuities empowers you to ask the right questions. Just as a sports car isn't ideal for family trips and a minivan may lack speed, knowing the ins and outs of annuities helps you grasp their capabilities. Armed with this knowledge, you can engage with your financial advisor more effectively, ensuring they guide you toward the annuity that best suits your financial goals.
Annuity Basics
HOW DO ANNUITIES WORK?
Annuities may seem complicated, because these products have various moving parts. Annuities are designed to build up the walls around your nest egg and shield you from market volatility.
WHAT IS ANNUITY INCOME?
Annuity income is you taking the reins and creating your own personal pension plan. Annuities come in various forms, offering flexibility and security, making sure you have some cash flow when you kick back and enjoy those retirement years.
HOW CAN AN ANNUITY HELP ME RETIRE?
A retirement annuity is what ensures your retirement income doesn't dry up when you need it most- IN RETIRMENT. Annuities provide a stress free stream of income that is guaranteed by an insurance company.
HOW DOES AN ANNUITY HELP ME PASS ON WEALTH?
An annuity facilitates seamless wealth transfer and avoids probate hassles. It ensures your loved ones receive financial support, serving as a strategic tool for passing on assets efficiently.
INDEXED ANNUITY
A fixed indexed annuity is a type of annuity contract that combines elements of both fixed and indexed annuities. It offers a guaranteed minimum interest rate, similar to a fixed annuity, while also providing the opportunity for interest credits linked to the performance of a stock market index, such as the S&P 500. The annuity holder can potentially benefit from market gains while having protection against market downturns.
FIXED ANNUITY
A fixed annuity is a type of annuity contract that provides a guaranteed, fixed interest rate on the invested principal for a specified period. During this time, the annuity holder receives regular, predictable payments, either immediately or at a future date. Fixed annuities offer stability and principal protection, making them suitable for individuals seeking a consistent stream of income without exposure to market fluctuations.
DEFFERRED ANNUITY
A deferred annuity is a type of annuity contract where the annuitant makes payments or invests a lump sum, but the distribution of income begins at a later date. During the deferral period, the annuity's value has the opportunity to grow through interest or investment returns. This type of annuity is often used as a retirement planning tool, allowing individuals to accumulate funds for future income needs.
VARIABLE ANNUITY
A variable annuity is a type of annuity contract that allows individuals to invest in a variety of sub-accounts, similar to mutual funds, within the annuity. The returns from these sub-accounts are tied to the performance of the financial markets. Variable annuities offer the potential for higher returns compared to fixed annuities, but they also come with greater risk as the value of the investment can fluctuate.
ANNUITY TYPES
Infinite Banking Concept (IBC)
Infinite Banking is a strategy that involves thinking of your life insurance policy as more than just protection. It's about leveraging the cash value within the policy to create a financial foundation for various needs throughout your life. It's essential to work closely with a financial professional familiar with this concept to implement it effectively based on your financial goals and circumstances.
HOW DOES IBC WORK?
IBC is a process, not a product. It starts with a Whole Life insurance policy that is overfunded to the MEC maximum as identified by the IRS to maintain its tax free status. From there, you are able to borrow the accumulated cash and repay as you see fit.
WHAT ARE INDIREDCT FUNDS AND WHY IS THAT IMPORTANT?
When you borrow from your policy, you are essentially borrowing money from your death benefit. All the while, your accumulated cash continues to compound with interest like it had never been touched.
Pro's & Con's of IBC
Pros: Growth on Borrowed Money, Guaranteed Loan Options, Whole Life's Tax-Exemption, Built-In Protection Benefits
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Cons: Limited Liquity in Early Years, Mandatory Annual Payments, Health Qualifying, Ongoing Discipline Required
WHAT IS AN IBC USED FOR?
Becoming your own bank is about using the cash value in a whole life insurance policy strategically to meet your financial needs and potentially reduce dependence on external lenders. Implementing this concept effectively requires careful planning and ongoing management.
WHO HAS USED IBC?
IBC was originally created in the 1980s by the late Nelson Nash. Nelson would later popularize IBC with his book The Infinite Banking Concept – Becoming Your Own Banker.
Famous entrepreneurs like J.C. Penney, Ray Kroc, and Walt Disney used Whole Life insurance as their own private bank to either start, grow, or save their business long before Nelson Nash’s work was published
