Why Should I Have An Annuity?
August 12, 2020Greg Felton, CLU, ChFC, Sales Director
gfelton@nsslife.org
Everyone knows that our annuities are great ways to save money. These timeless programs have been around for quite some time. The key features of an annuity include: tax-deferral, safety of principal, competitive rate of return, liquidity, and probate free pass- ing of assets at death.
Should I have an annuity instead of a traditional IRA or a Roth IRA? The answer is probably no. But what if you already have those, or don’t want either of those products.
Then an annuity would work great. A person should have a regular annuity (non-qualified) for several good reasons:
- As a place to put any unwanted RMD money. Many times people with IRAs reach RMD age and don’t want to take the money. They have to but with a non-qualified annuity they could put the money there and still earn interest. How- ever, they would still get a 1099 from us for their RMD distribution and owe federal taxes on that RMD amount.
- For any bank CD money that may be renewing at .10% interest. That number isn’t 10% or 1% – it is .10%. On a $100,000 CD renew- ing at that rate you would receive $100 of interest. Same money in our best annuity would earn more than $3,000 of interest. That is a big deal!
- How about an inheritance from your late uncle. He left you $50,000 – now where to put it?
Plus our annuities have a minimum guarantee of 2% interest. They may also be used to provide a life time income stream. In this example, you give up the lump sum and take monthly payments for what could be your entire life. Annu- ities have so many positive attributes. More people need to become familiar with these savings plans.
The minimum deposit to open an annuity is $1,000 or $90 per month. Why not get this plan started now. Call your local NSS representative or Joe Elliott in the Home Office for more information.