Most people put their savings in bank CDs because it's FDIC insured. Little do they realize the cost they are paying for this coverage. One out of every three year's interest goes to taxes, plus all the other "catches" the bank attaches to your CDs.
Annuity Certificates are also safe and guaranteed by their reserves, billions of assets, by the world's largest life insurance companies. With an annuity you get to keep the money you would pay Uncle Sam and draw interest on the money until you choose to pay taxes on the interest! This gives you triple compounding of your money, something bank CDs can't do! When you do, you can eliminate paying taxes on up to 85% of your income!
Here is a list of reasons why insurance companies are safe, and good places to put your money.
1. Reserves required by law.
2. Nature of reserves is highly regulated.
3. Reserves are checked regularly and in detail through state audits.
4. Insurance company promises are backed by all the assets of the company.
5. Insurance company insolvencies are very rare.
And let's not forget ALL THE OTHER ADVANTAGES!
1. Non-qualified funds get tax-deferral, so potentially, you can earn much more.
2. There are no "renewable" surrender charges, as in a CD.
3. With a named beneficiary you avoid probate.
4. Free annual withdrawal provisions.
5. Waiver of some or all surrender charges due to confinement in a nursing home.
6. Waiver of surrender charges at death or annuitization.
7. Life income guarantees.
8. Annuity interest rates are usually higher than bank rates.
As you can see, when you become familiar with the facts, it makes a lot of sense to trust an insurance company.
Most annuities are purchased from captive insurance agents who offer limited fixed annuities, or from banks with little investment and planning expertise. We offer a wide range of annuities from a long list of the top companies in the industry. We will work with you to find an annuity that suits you and your financial needs. We also continually monitor the market and provide you with up to date information. We would be glad to assist you, whether you are considering an annuity at this time, or if you already own an annuity or Bank CD and simply need someone to answer your questions. We are also qualified to help you look at the big picture, ensuring that any annuity or Bank CD purchase makes sense from a taxation, planning and investment standpoint.