How do you protect your hard-earned savings during these difficult and turbulent economic times? With 401ks losing over half of their value, and net worth’s declining, is there a safe alternative to the stock market? The answer is yes…an annuity.

If you answer yes to these questions, you could benefit from an annuity:

• Is it important to you, for your retirement funds to be protected from stock market losses?

• Would you like a portion of your money to receive higher interest than a CD?

• Would you like to know that your account value is increasing on a daily basis?

• Would you sleep better knowing that you have an income stream that you cannot outlive?

• Would you like for your money to grow tax-deferred?

• Would you like your money to earn interest every year without putting you in a higher tax bracket?

• Would you like your money to grow without causing your Social Security income to become taxable?

• Would you like your account value to increase when the stock market indices increase, but not go down when the stock market indices go down?

• Would you like for your heirs to receive inheritance money without going through probate?

• Would you like to have your retirement accounts increase by 5% or 10% immediately with the possibility of gaining up to 30% by the end of the year with no risk to principal?

An annuity is a contract between you and an insurance company, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date. Annuities offer tax-deferred growth of earnings and ordinary income tax is due only upon withdrawal. A 10% penalty may be incurred if funds are withdrawn prior to age 59 ½.

Important features include:

• Annuities are safe

• Avoid probate

• Competitive yields

• Can be protected from creditors

• Wealth transfer tool

• You have the option of several liquidity options

• Protect against longevity risk with income you cannot outlive. Unlike a savings account, the funds in an annuity can’t be depleted.

• There are no limits on yearly contributions like there are with a 401(k) or IRA.

• Tax free interest accumulation. If you’re in a high tax bracket now and expect to be in a lower one when you retire, an annuity is an especially attractive savings vehicle.

• Protection from estate taxes. Most annuities pay a death benefit in the form of a life insurance claim, which means your heirs may not have to pay estate or income taxes on the proceeds.

There are many types of annuities available. The latest and perhaps most popular choice is the Fixed Indexed Annuity. Most annuity contracts typically have a fixed guaranteed rate of 3, 4, or 5%. Equity Indexed Annuities “peg” the current interest rates to some independent index such as the S&P 500. For example, if the S&P index grows 12% during a contract year, the insurance company might credit 50% or more of that growth as the interest rate for those annuity contracts or 6%. If the guaranteed rate were 3%, the contract owner would enjoy a bonus of 3% over the guaranteed minimum rate during that year. However, if the index has minimal or even negative growth, the company would still credit the guaranteed rate of 3%. With this type of two-tier interest rate, the buyer has the best of both worlds…upside gains with no downside risk!

Another very exciting new product is the Annuity/ Long Term Care Insurance Rider combo. Here’s how it works: if you had $100,000 in an annuity and needed any type of long term care assistance, the value of the annuity would triple! Your $100,000 would be worth $300,000 towards Long Term Care! Please call me and I’ll explain this and other strategies to protect your assets and help you save for retirement.