GMR 160: How to Create Protected Lifetime Income

Show Notes


Today’s Annuity: A Tool to Create Protected Lifetime Income


What are annuities?


An insurance product


About a quarter trillion sold in the US each year


Annuity companies are highly regulated


Benefits of Annuities


Tax Deferral


Principal Protection


Unlimited Contributions for Non-Qualified Annuities


Ability to Be Swapped Tax-Free


Probate Avoidance


Access to Cash When Needed


Offset to Longevity Risk


Guaranteed Protected Income*


Death Benefits


Nursing Home, Long-Term Care, and Terminal Illness Benefits


Types of Annuities


Fixed Annuities


Variable Annuities


Buffered or Structured Annuities


Fixed Indexed Annuities


Immediate Income Annuities


Deferred Income Annuities and QLACs


Major positives and negatives to buying annuities


The Positives


 Produce higher returns than many other fixed-income options


 Option for guaranteed lifetime income


 Offer a variety of payout options


 Tax-deferred income accumulation


 Can have guaranteed/predictable rates of return


 Can have principal protection and no risk of principal to
market volatility


 All 100% of premiums work to generate interest


Available contract riders


The Negatives


 Some products have fees and charges


 Restricted access to cash


 No capital gains tax rates on earnings


 Contractual bonuses come with strings attached


 Additional income taxes for withdrawals prior to age
59-and-a-half


 No additional tax benefit for qualified funds


Complexity


Where can you buy annuities?  How difficult is it to
purchase the product?


The Places You’ll Look – The Purchase Channels


Be Sure to Ask Key Questions to Ask Before You Buy


The Five Steps to Purchasing An Annuity


Resources


Harry N. Stout Website - www.financialverse.com
Today’s Annuity Products: A Tool to Create Protected Lifetime
Income
Financial Verse Books by Harry N. Stout
Budgeting tools and other free resources -
https://leosabo.com/resources
David’s website - www.stewardshippastors.com