Fixed Annuities are financial products that can serve a variety of needs. These contracts, assuming the funds are held to the end of the Guarantee Period, may provide a safe haven for growth with important guarantees related to principal. Because returns are not taxed until withdrawn from the contract, Annuities enjoy the advantage of compounding in three ways: Interest is earned on deposits; interest is earned on interest; and interest is earned on money that would have gone to pay taxes, if that money had been placed in a product that is immediately taxable. Within a well-developed financial plan, Annuities enjoy tax deferral on funds left to accumulate, perhaps deferring those taxes to retirement when a client’s income tax bracket may be lower. Annuities may also aid in the inter-generational transfer of wealth because Annuities, when structured to pay a death benefit directly to a named beneficiary, avoid the probate process.
Most personal financial plans have different categories of money set aside to serve different purposes: readily available cash, both long and short term investments, and emergency funds. Annuities should be considered a long term commitment. Working with an agent, clients can determine exactly what they want to accomplish with an Annuity. Again, it's important that consumers considering an Annuity have a good understanding of their own situation. Before deciding on an Annuity, consumers need to clearly identify their financial goals:
During the review process with your agent, there are other questions to consider:
It is our hope that our clients will be well informed and satisfied with the contracts they purchase from us. At Clear Spring Life, our mission is to provide Fixed Annuities with the highest customer value, offer industry-leading service, and always remember that we owe our greatest loyalty to our clients.
Clear Spring Life does not provide legal or tax advice to policyholders or prospective policyholders. For legal or tax advice concerning your specific situation, you should consult your attorney, accountant or tax advisor.