Which of the following is not true regarding the accumulation period of an annuity This is a topic that many people are looking for. s-star.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, s-star.org would like to introduce to you Annuity Withdrawal – How to take Annuity Withdrawals. Following along are instructions in the video below:
“Owner of a fosse financial group. Today s topic. I want to discuss with you you a thorough review on an annuity with charles and try to help you determine you take out an annuity withdrawal from your specific you know annuity contract and how exactly that works now depending upon what type of annuity you have we re just gonna start off with the most basic one you might have something known as a single premium. Immediate annuity and what this.
Shows you is if we just use an example of 100000. For every single example. I m gonna go over let s say. If you go you put your 65 years old.
You purchase a single premium immediate annuity for a life. Only single premium. Immediate annuity and you decide okay i want to pull out income. I m going to give the insurance company a hundred thousand dollars and they re going to provide me with six thousand dollars every single year to the day that i pass away what would happen is you d place it in there and then you would essentially annuitize this contract you take your lifetime income payments understanding that you re getting paid 6000 6000 6000 6000 now with a single premium immediate annuity that i and that word is very very important.
It s known as immediate these are annuities that you re going to be turning on that income stream within one year. Some of them have it like within two years within three years. But it s typically a very short term something that s immediate that the company isn t that you re going to essentially surrender your money to the insurance company and then the insurance company is gonna pay you immediately now you know well like i said in other videos. I don t really like that process.
I think it s correct. If you re trying to leverage that in a certain avenue possibly the purchase life insurance or you know some different criteria. But essentially that s how that withdrawal is made it s through the form of an annuity say ssin through the form of a lifetime income payment so you would call up your company that you have that annuity contract and say okay listen i want to you know turn on my lifetime income. How exactly does that work that s the very most basic term of an annuity withdrawal on top of it you might have something known as a fixed annuity.
The next type of annuity on there and how this works is it s kind of like a kind of like a bank cd. You know you have an account. And this word fixed is very important. It s going to pay you a fixed interest.
Rate. So if you had 100000. And you purchased a fixed annuity and let s say that fixed it for a 5 year fixed annuity. But we understand that that the amount of years is going to be fixed.
It s going to be five years that you re going to be receiving that credit and also this interest rate that you re going to be getting paid is also going to be fixed. So we understand you would be getting paid. 3 year 1 3. Year 2 3.
Year 3 3. Year for 3 year. 5. At the end of 5 years you re going to have a much larger bucket of money that s essentially saying there may be a 115000.
Or. Even a little bit higher than that. Because you have the power of compound interest. That s working on that account value so maybe 116 117.
Now though different ways that you could take a withdraw roll off of your fixed annuity. If some carriers allow you to pull up to whatever that percentage is so if you re getting paid. 3. They allow you to just live off of that 3 being able to if you have a 5 year contract they re allowing you to take your interest.
Only whatever your credit is so you could use that as. Income the reason why that s important is if you have 100000. And you re getting paid three thousand three percent well. Then you could you understand that you could use that as a fixed income stream that you re getting paid 3000 3000 3000 for five years and then after five years you have your 100000 was preserved and protected and now you could roll that over into something else so you could take that in one of two ways you could either take that in the form of you know that interest only payment.
Some companies allow you to pull up to 10 of of whatever your account value is you know from those fixed annuities. So you could do it that way or you couldn t annuitize your contract meaning that you could tell the insurance. Company. Listen i understand i have 100000.
In there. I understand that i originally got set up in a fixed annuity fixed interest annuity. I just want to annuitize this contract. Give you give you the insurance company all the money and then the insurance company is gonna pay you a lifetime income stream based upon their their tables their analysis and then maybe that might be for thousand dollars.
Every single year to the day that you pass away once again annuitization lifetime income when you re doing it through annuitization. I absolutely hate it because you re losing control meaning that if let s say you go with that scenario. Where you decide you re in a fixed. Annuity or you.
re in a single. Premium immediate. Annuity you give the insurance company 100000. And you start pulling out your income well something happens to you in the first couple of years and you pass away.
Unfortunately. The insurance company is keeping all the rest of that money now if you live long. Then obviously you re leveraging. The insurance company.
The insurance company is on the hook to still pay you that lifetime income stream. So there s some give and take there but the insurance company by leveraging. The law of large numbers and millions and millions of different policyholders. They re going to win off of that deal every single time you know for a majority of the the contracts that they have so it s very very important that you either take it in the form of you know you re free withdrawals meaning.
You don t get a penalty. You can be taking an interest. Only with your orals. You know we re up to that 10.
And that s what my main recommendation is if you re utilizing. An annuity withdrawal now it all kind of goes by a case by case basis. But understand that that s going to give you the most flexibility while allowing you to still maintain and still somewhat control your account value in the process. The next type would be a hybrid annuity or actually sorry.
We ll go with a fixed. Indexed annuity. A fixed. Indexed annuity works.
Just like how a fixed annuity works. Except for every year. Instead of paying you three percent interest year by year by year. What you re gonna get paid interest is based upon an upward market movement.
Upwards stock market index movement meaning that if your contract. You you have something in an s p. 500. And let s say this s p.
500. Has a 10 cap and the s p 500. Gains. 15 well because your cap is 10.
You re going to get credited 10 into your account value that first. Year so now your account value sitting at 110000. Which would have done better than three years of the fixed annuity side. So that s the reason.
Why people like to go into the indexes now let s say the next year. The s p. 500. Loses 50 percent well you also have a floor.
You have a cap up to a certain limit and you have a floor of 0. So therefore in that specific situation. Let s say you gain 10 percent then you lost 10 percent. Then you gain 10 percent.
Then you lost 10 percent. Then you gain 10 percent. What exactly does that look like well you would have had a gain of 10 percent. That would have been credited in there you locked in the next year.
When you lost 10 percent you still stay at 1 10. The next year when you gain 10 percent. You re now having a new gain of 10 percent. Which would bring that to was at 120 1000.
Then if then the next year. When you lost 10 percent. You would just gain 0 percent. The next year you would gain 10 percent.
Which would give you a gain of 12. Thousand. 100 which is 3. 3.
130. 3100. So as you could see a fixed. Indexed annuity.
Is more powerful. Then our has better potential then a fixed annuity. But you know if the market crashes. Every single year and you have a 5 year contract well then you understand you re only getting paid 0 0.
0. So that s kind of the gamble between it but you re gonna have the preservation on your specific account value growth. The way that you could pull out money in a fixed. Indexed annuity is you could do in the form of a free with your oral.
They might give you up to 10 of a free withdraw of saying yes. You know maybe if you you know and i like an interest only gain. If let s say the market gains 10. You could pull out 10.
So that your account value staying exactly the same let s say the next year for gains. 5. You could just pull out whatever that interest is or you could pull out up to 10 of your account value at all times now that all depends upon what fixed index annuity you go into some companies are more restricted than others so it s all about fine you know fine tuning. These are your specific situation.
But you could take that in the form of different withdraw rules. Now one of the things. I always mentioned is something known as a hybrid annuity. This is where i believe you have the most flexible options with your with your income streams.
It s a fixed indexed annuity with an income rider. So you have a secondary account kind of like a personal pension account. Which is meant specifically for income and this is not annuitize. Amani so let s say if you go this individual place is 100000.
Into this contract your fixed index annuity side is going to gain flatline gain flatline gain flatline this secondary income account. Brighter side is going to have a specific guarantee on it based upon whatever the the company is they re going to give you a specific calculation that the longer that you wait the higher your lifetime income amount is going to be so let s say you re 65 years old and you allow this to grow at. Age. 70 maybe this grew from.
100000. To 170000. And this grew from this income account based upon whatever that fixed percentage rate that they re paying you. Maybe it s going to grow to 200000.
So at this point in time you re going to be. Reading. Statements it s gonna say your account value is. Sitting at 170000.
Your income withdrawal base your benefit base different. Variation that word is sitting at 200000. If you want to take you could either pull out up to 10 off of this side. Depending upon the company.
Depending upon the contract where you take out 17000. Which i do not recommend because the whole purpose. Why you got set up in the hybrid annuity in the first place was to leverage this side to leverage your lifetime income side. But understand you have flexibility if you have that oh my gosh moment you could pull up that 7th 10 percent of that.
Money 17000. Completely penalty free so you could pull that up up to 10 percent depending. Upon the company typically that 10 percent free withdrawal is it happens every year after the first year going forward. These are typically 10 year contracts meaning after 10 years you could then access all of your account value.
But in this situation in five years you could either pull out up to that 10 which would reduce this proportionately or you can execute your lifetime income stream. The way that the company calculates that is they say okay whatever this income account is multiplied by something known as a withdrawal rate percentage. And it s all going to be based upon your in your contract on your illustration. All of that so let s say i need 70 maybe the company s going to guarantee.
You 6 so we understand. 200000 multiplied by 6 is what 12000. So this shows you that the company will give you a guarantee based upon the claims paying ability of that. Company 12000.
A year by year by year by year by year every year to the day that you pass away now. I know what you think you re probably saying. Derrick that sounds just like that single premium immediate annuity and it s not what we re doing here is we re leveraging. An income rider.
We are not annuitize in your contract. The reason why that s very important is let s say if you take out 12000. The first year and let s say the market didn t gain anything well then this account value would be reduced 12000. Bringing your new account value to 158 thousand dollars.
Well let s say god forbid. You pass away with your single premium. Immediate annuity. If you would have passed away after the first year your beneficiaries would receive.
0. With this your beneficiaries would receive the full one hundred and fifty eight thousand dollars. So you re allowed to have flexibility regarding your free withdrawal amount meaning. You ve ever come to an oh.
My gosh moment depending upon what contract that is you know you could pull up to ten percent in a given year you have your lifetime income that the company is guaranteeing you and then you have also flexibility regarding what you re going to be leaving as an inheritance as a death benefit. So this is why i like these sort of avenues especially. When you re looking to take withdrawals from retirement accounts or take withdrawals from annuity contracts and you re doing it the correct way now depending upon whatever your specific situation is whatever your specific annuity is i always recommend give our 1 800. Number a call we offer 24 7 customer service.
We are a plus rated on the better business bureau. We ve never had any complaints. We ve always had really good reviews and the reason being is because of our education process. We try to give you as much free content as possible we try to go over different strategies with you we show you all the different results on how you could leverage these different insurance companies making sure that it molds specifically to your goals in this case specifically to your annuity situation.
If you go and you have a type of annuity contract and you don t really understand what you re in give us a call we ll help educate you on some of your different. You know some of your different avenues. Well. We noticed a lot of times especially.
If somebody has variable annuities. They might have certain things certain smoke and mirrors that they you know they were promised or they they understood a specific product line a certain way and in actuality. It s not their contract is not set up that specific way so we re able to do is we could show you different ways on how you could either you know take out the those annuity. Which world s most efficiently you could either replace those annuity with charles depending upon you know different factors such as surrender charges to depend upon if your goal is max income.
I m sure you ways on how you can get more lifetime income through a safer product that gives you that safety and consistency through like something like a hybrid annuity or through something like a fixed annuity and there s the you know. There s so many different ways to skin. That cat and you know what what we re trying to do is just make sure that you are educated that you do understand that you control the chips and these companies are giving you offerings. It s not like you have to be handcuffed to one company.
If you said at a seminar. And you say oh this one carrier that sounded so good most likely that s not going to be your perfect fit depending upon your specific area. I mean you could have over 300 different contracts you could have multiple different strategies. Bringing with each individual that we deal with we go over 1200 different scenarios.
Making sure that with precision. This is going to be their best possible route. So you know once again give our 1 800. Number a call if you need any help you know if you need help understanding what your specific options are regarding your particular annuity you re with charles if you re just interested in annuity contract and you want to see whether or not it might be a fit for you.
And you just want a real honest review. Please give us a call and we ll try to educate you best way possible once again my name is derek ifasi. I want to thank you very much for watching this video. Please be on the lookout for please subscribe to our youtube channel over tire.
Sharp. So you get the most updated videos and thank you so much for watching. ” ..
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