"The
Equity Indexed Annuity Portfolio with Integrity" issued by
American Equity Life Insurance Company of Des Moines, IA is now available
from ANBC Certified Annuity Consultants.
The portfolio with "Integrity" links your interest rate
to a selection of US Stock Market Indices with a choice of asset allocations
with a guaranteed minimum return of 100% of your money compounded
at 3% tax-deferred (that’s a 4.35% taxable equivalent) or the
higher interest rate linked to your choice of available indexing strategies.
Now that is Integrity!
The Freedom Plus with the shorter contract term is the Number
One choice!
Paul
J. Cross’ Dictionary of Annuity Terms:
Annuity… A money contract. The annuity dates all the way
back to the days of the Roman Empire when the wealthy traded money
and land for a guaranteed income for their families should they not
return from the wars and the deadly games they so proudly played.
Annuity Modern Day… A money certificate (contract) guaranteed
by the issuing insurance company.
Annuity Tax-Deferred… The gain is sheltered from the IRS
during the growth or accumulation phase. The tax-deferred annuity
can automatically re-invest the tax dollars at interest for you. You
can earn interest on the tax dollars as long as you leave them in
the annuity. One might say it’s like borrowing money from Uncle
Sam at Zero percent.
Annuity Traditional… A tax-deferred annuity with a declared
interest rate and guaranteed minimum performance. Annuity contracts
are issued with 3, 5, 7, 10 year and longer contract terms with interest
rates guaranteed for the term or with annually adjustable interest
rates with lifetime minimum guarantees.
Annuity Equity-Indexed… A tax-deferred annuity with the interest
rate indexed or linked to one or more US Stock Market Indices with
positive guaranteed gains at the maturity of the contract term.
Annuity Immediate Income… Offers many income options tailored
to fit the buyer’s needs. The immediate income annuity guarantees
a level income over specified periods of time including a guaranteed
period certain and life thereafter. The immediate income annuity pays
out the principal and interest earnings over the period of contract
terms selected. The immediate annuity provides a tax-favored income
by levelizing or amortizing the interest earnings over the period
of guaranteed income.
Annuity Split Funded Strategy… A tax-deferred annuity
(growth annuity) and an immediate income annuity. The combination
generally provides more income and more growth than interest withdrawals
from bank accounts or interest withdrawals from tax-deferred annuities.
Annuity Qualified Retirement…Any annuity held in a retirement
plan as approved by the Internal Revenue Code i.e., IRAs, 401Ks, SEPs,
etc.
Annuity Qualified Retirement… Any annuity held in a retirement
plan as approved by the Internal Revenue Code i.e., IRAs, 401Ks, SEPs,
etc.
Annuity Non-Qualified… References any annuity that is
not established as a qualified retirement plan.
Annuity Roth IRA… The Roth IRA Annuity grows tax-deferred
and when the rules are followed the full accumulation is available
tax-free to the owner or tax-free to the owner’s beneficiaries.
For more info go to Roth Tax-free IRA.
Annuity Variable… An annuity with risk. Variable annuities
combine a mutual fund with life insurance coverage. If held until
death your life insurance guarantees the return of your money. The
Variable annuity surrendered anytime prior to death may have a gain
or a loss.
Annuitization… References the conversion of a tax-deferred
annuity into an income stream. Annuitization is an option available
to both the annuity owner and the beneficiary.
Annuity Premium Bonus… A bonus that is credited to your
annuity on the initial amount transferred to your annuity. Example:
A 6% premium bonus on a $50,000 money transfer means you are immediately
credited with a tax-deferred $3,000 bonus for a total of $53,000.
Your money and your bonus will earn interest from day one. A 6% premium
bonus and a 5% annual rate will earn you 11.3% the first year. Note:
Your 6% premium bonus also earned tax-deferred interest for you.
Annuity Interest Rate Bonus… A bonus that is added to your
initial interest rate fully credited at the end of the first contract
year. Example: A 7% interest rate bonus and 5% annual rate would credit
you with 12% tax-deferred. (12% tax-deferred is equivalent to 17.4%
taxable. For more information on taxable rates versus tax-deferred
go to Rates & Yields)
Annuity Medicaid Friendly… Lets you elect a monthly income
based upon your life expectancy in accordance with the Social Security
Mortality tables thereby protecting the full value from immediate
exposure to the Medicaid spend down provision. It’s just one
more planning strategy available to you with annuities.
Annuity Penalty Free Cash Withdrawals… Look for annuities
that will allow you to withdraw 10% each year without penalty just
in case you need emergency cash.
Annuity Penalty Free Death Benefit… Look for annuities
with contract terms that mature in the event of the owners death.
That means your beneficiaries can receive the full lump sum without
penalty.
Annuity Surrender Charge… A cost or charge if you make
excessive withdrawals or surrender your annuity contract early or
before the end of the contract term. Generally the surrender charge
declines and vanishes in 3, 5, 7, or 10 years while some have longer
contract terms.
Watch out: Two tiered annuities can bite you with heavy surrender
penalties that increase until you and/or your beneficiary elect a
monthly income thereby eliminating the possibility of tax-free exchanges
and total withdrawal without large penalties.
Annuity Surrender Period… The period of time during which
you would pay a penalty for total surrender or total withdrawal from
the annuity. Generally 3, 5, 7, or 10 year contract terms.
Beneficiary (ies)… The primary beneficiary is the person
named to receive the annuity monies at the owner’s death. The
named secondary beneficiary (ies) are to receive the annuity monies
in the event the primary beneficiary pre-deceases the owner.
Probate Free Transfer… The annuity with proper beneficiary
designations is one way to leave your money to your family without
court costs, administrative fees, and legal fees. Avoid court battles
and legal fees and your heirs will receive more money.
Annuity Triple Check… You want 1. Penalty Free Withdrawals
2. Penalty Free Death Benefit. 3. Surrender Charge that Vanishes at
the end of the Contract Term. And for peace of mind consult with an
ANBC Certified Annuity Consultant.
CAC… An ANBC Certified Annuity Consultant. Certification
requires the successful completion of an accredited annuity course
with a rigid examination. ANBC Certified Annuity Consultants subscribe
to and enforce a strict professional code of ethics.
1035 Tax-Free Exchange… IRC Sec. 1035 provides for the
tax-free exchange or transfer from one annuity directly to another
annuity. 1035 tax-free exchange references non-qualified annuities.
Transfers of Qualified Retirement Annuities are addressed as Rollovers.
Money Market Account… A Federally insured account available
at many banks, credit unions, and savings & loan Associations.
Money Market Fund… A type of mutual fund that invests
in short-term securities. Money market funds are easily convertible
into cash but are not guaranteed or insured.
Provisional Income… A calculation that determines the
taxation on your social security income. For more information go to
the ANBC Social Security Echo Exam…it’s a stress test on
your social security income.
Risk… Increases the probability of Zero return and risk
increases the probability of the loss of some or all of one’s
money.
Rollover… A tax-free rollover or transfer of a qualified
retirement plan from one investment to another investment i.e., an
IRA rollover from a mutual fund to an annuity or from one annuity
to another annuity.
Social Security Income Taxation… The income tax you pay
on your social security income is triggered by your provisional income
i.e., interest credited to your checking, savings accounts, bank CDs,
money market funds, and your tax-free interest from muni bonds is
considered provisional income and therefore triggers income tax on
your social security income.
Note: Tax-deferred interest credited to your annuity is not
considered provisional income.
