Host : Colin MacDonald
Category : Basics of Annuities
Date : 10 December, 2019
Topic : Top 5 Things To know
Length : 15 Mins
Tags : annuities, CD's, Safety
This is a replay of a webinar hosted by All Things Annuity President, Colin MacDonald. The topic for this webinar was "The Top 5 Things To Know About Annuities." Colin covers the basic featues of annuities, how to keep it simple, and the top five things everyone whould know before buying an annuity.
Annuities are most efficient when they are used to supplement income once the owner is retired. The idea that these products grow in an account, tax deferred, with a plausible rate of return, is very conducive to many clients' retirement goals. The tax-deferral benefits of annuities are most valuable for those in the highest tax brackets who have already met contribution limits in tax-advantaged retirement accounts. On average, these are middle-aged people approaching retirement.
To strengthen the point that annuities are a retirement vehicle, the government will garnish 10% of the accumulation value if the annuitant decides to opt out of the contract before age 59 ½. Along with the 10% taken, the remaining balance on the policy is still subject to normal income taxation.