Louisiana Business

In today's society, everyone who lives long enough must face this basic question:

"How do I provide for my financial security - and that of any dependents I may have - in retirement?"

TAX DEFERRED ANNUITIES are an excellent vehicle for superior retirement & investment savings...

Advantages of an Annuity

Tax-Deferral: A major benefit of annuities is their tax deferred status. Interest earned by an annuity is not subject to income tax until it is withdrawn by the

annuitant. This is a distinct advantage over a savings account, CD's or other investments where their earnings are immediately subject to tax, even though it

is not withdrawn.

Tax-Free Income: A portion of each installment of annuity income is considered a return of the purchaser's investment and is income-tax free. Only if the

annuitant outlives his or her life expectancy does the annuity income become fully taxable.

Guaranteed Income For Life: By choosing from among the various life annuity options offered, purchasers can be assured that neither they nor their

spouses will outlive their resources. The ability to provide an income which cannot be outlived is the unique quality of an annuity and its most important

advantage over other assets. This lifetime income can be larger than "interest only," because it involves the systematic liquidation of principal. If interest

income alone is not enough, an annuity offers the safest way to supplement interest income with principal.

No Contribution Limits: Unlike an IRA or a tax-qualified retirement plan, there is no limit to the amount which an individual can invest in an annuity. Thus,

the amount of tax-sheltered interest available to a purchaser is limited only by his or her own resources.

Single Premium Deferred Annuity (SPDA)

An annuity may be purchased with a single investment of funds - a single premium. Since the contract is fully paid for with the single premium, benefit

payments begin at a later time (such as at age 65). A single premium annuity is designed to meet the investment requirements of those with a lump sum to

invest, perhaps made available through an inheritance, life insurance proceeds, a one time sale of assets, or a lump-sum pension distribution. The SPDA is

the most widely known and most popular annuity. The SPDA offers a means of accumulating a fund for retirement without the need to make a specific

retirement income decision. The SPDA is left to accumulate until a later "maturity date." The maturity date is generally chosen to coincide with the end of the

purchaser's income-earning years and anticipated retirement. However, the contract generally permits extending the deferral period to a later maturity date

and also shortening it to an earlier one. Throughout the deferral period, the cash value of the annuity builds on a tax-deferred basis. SPDA's are generally

best viewed as long term investments. The greatest benefit is gained if the funds are left on deposit so the compound interest and tax deferral can have

maximum effect...Also, with a few exceptions, the federal government imposes a penalty tax on income withdrawn before age 59½. Most SPDA's contain a

limited "free" withdrawal privilege which enables the owner of the contract to access invested funds in the annuity on a limited basis. The most common

provision allows withdrawals up to 10% of the accumulated funds on deposit each year. Some companies allow the withdrawal of accumulated interest

without charge at any time. Many variations are constantly evolving towards greater flexibility with regard to withdrawals.The precise method of payout is left

to be determined at retirement, or whenever the contract is terminated.

Single Premium Immediate Annuity (SPIA)

An annuity calling for payments to begin right away (or at the end of a short period of time) is called an Immediate annuity. Income generally begins under

an SPIA one payment period after the single premium has been paid and the annuity is issued. Income may be deferred under an SPIA, but if it is, the

contract usually cannot be surrendered for it's cash value, as is possible with deferred annuities. SPIA's may generally be purchased to pay income on a

monthly, quarterly, semi-annual or annual basis. This means that the first income payment will generally occur one month, three months, six months, or

one year after issue

Flexible Premium Deferred Annuity (FPDA)

Obviously, not everyone will be able to purchase an annuity with a single sum, not having such a sum immediately available. For people without large

sums of money to invest, but with a desire to accumulate funds for future income needs, the FPDA Flex-Premium-Deferred-Annuity is an excellent

alternative. This pay-as-you-go arrangement can easily fit into a family budget with Flexible-Premium Annuity deposits available as low as $20 per

month. The FPDA permits premiums of varying amounts to be paid at irregular intervals. This is beneficial for meeting the needs of individuals whose

income may vary from year to year, as well as those with steady incomes. The FPDA, with special provisions added, can also qualify as an "Individual

Retirement Annuity" and thus serve as a pre-tax investment vehicle for those who can benefit from an IRA.

Equity Indexed Annuity (EIA)

EIA's have interest rates that are linked to growth in the equity market as measured by an index such as the S&P 500. The EIA owner enjoys the

upside potential of equities but is not exposed to downside risk. EIA's have fixed minimum guarantees, and the value of an EIA can only increase due

to market growth...it will never decline to to market movement. EIA's offer the opportunity to earn returns linked to increases in equiuty value. Equities

have historically out-preformed fixed income investments and inflation, so earnings linked to this market have good inflation-fighting potential. Since the

EIA is based upon an equity index, this can be an ideal product for a risk adverse investor who wants to participate in the market-linked returns with no

downside risk.

Tax-Deferred Annuities are an excellent vehicle for funding an IRA or replacing low interest bank CD's...

Give us a call for a personalized, no-obligation spreadsheet listing plan benefits and premiums from many top insurance

companies doing business in Louisiana. Let us help you find insurance coverage that best fits all your requirements within a

reasonable premium range.

(225) 612-4589

Feature

Management Fees

Downside Market Risk

Prior Earnings Guaranteed Against Market Downturns

Dividends

Principal Guranteed