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Immediate Annuities

Caution needs to be implemented when considering an immediate annuity. Once your money goes into an immediate annuity, you then lose all control of the principal (your savings) and the income cannot be adjusted either up or down.

Immediate Annuities do have some positive benefits when there is a specific need for a life-time income or guaranteed stream of income for a specific period of time. This type of annuity product is similar to pensions as they provide a monthly income that cannot be changed.

Example: if you’re drawing $2000.00 per month from your immediate annuity and an emergency arises where you need an additional sum of money in any given month, immediate annuity will not be able to accommodate this need. The payments are irrevocable and cannot be changed.

Annuities are best suited for long term investors. Any strategy utilizing investments carries an inherent element of risk. Withdrawals from an annuity prior to age 59 1/2 are subject to a 10% tax penalty in addition to income taxes on earnings. Guarantees are based upon the claims paying ability of the underlying insurance agency. Riders are available as an addition to a purchase of an annuity contract, however, there are additional costs associates with the addition of a rider.

Annuities are best suited for long term investors. Any strategy utilizing investments carries an inherent element of risk. Withdrawals from an annuity prior to age 59 1/2 are subject to a 10% tax penalty in addition to income taxes on earnings. Guarantees are based upon the claims paying ability of the underlying insurance agency. Riders are available as an addition to a purchase of an annuity contract, however, there are additional costs associates with the addition of a rider.

LET'S TALK

Mike Albertson is an Investment Adviser Representative. Advisory services offered through Secure Asset Management, LLC (SAM) a Registered Investment Adviser.

Securities are offered through Aurora Securities, Inc. (ASI) Member: FINRA/SIPC.

Tradewell Tax and Financial is not an affiliated company of (SAM) or (ASI).

Representatives of Tradewell Tax and Financial are authorized in states where they are properly registered. Mike Albertson: FL, IN, KY, OH, SC. Clients who are not residents of these states cannot be serviced.

This website is not intended to provide investment, legal, or tax advice, nor to effect securities transactions or to render personal advice for compensation. Tradewell Tax & Financial is not engaged in the practice of law. All insurance recommendations offered through Indiana Tax Advisory Group, Inc. Mike Albertson is President of Indiana Tax Advisory Group, Inc.

There are no assurances that you will achieve your investment objectives. All investment strategies have the potential for profit or loss. Changes in investment strategies, economic conditions, contributions, or withdrawals may materially alter the performance of your portfolio. Past performance is no guarantee of future success. We provide no guarantee that any portfolio will match or outperform any benchmark.

Recommendations and advice are based on information provided by the client that is presumed to be accurate. The financial planning process is not stagnant and must be adjusted based upon changes in the client's personal and financial situation, liquidity needs, investment objectives, and risk tolerance. Clients are responsible for notifying us immediately if their personal and financial circumstances or goals change.