Insurance products can be an integral part of your clients
overall financial strategy. This is particularly true of
CL Consulting, Inc.’s Annuity offerings. Annuities are investment vehicles
designed for long-term savings, making them ideally suited
to supplement your client’s other retirement income planning
choices. An Annuity can be used to accumulate money and to
distribute money to your clients or their beneficiaries.
Nothing says ‘safe and secure’ like an Annuity. Annuities
are not subject to the variances of the stock market, rather
the rate of interest earned by an Annuity is locked in for a
specific period of time. After the end of the specified
period, the interest rate may change subject to market
conditions. However, the interest will never fall below a
contractually stipulated minimum. As premiums are
contributed, they are invested in accordance with the
contract. The earnings grow tax-deferred until withdrawn at
which time they are taxed as ordinary income.
When choosing Annuities, you and your clients should
consider the following:
Tax Qualified: meets tax deferral
requirements under the Internal Revenue Code.
Annuity: With an immediate annuity, regular payments are
generated within a short period, usually 30 days after a
single premium is paid. Payments can be structured with
great flexibility; this is addressed further under the
section, "Payout Phase". Typically, an immediate annuity
becomes a binding contract once it is funded and cannot be
broken. The principal investment is surrendered in return
for the promise of a guaranteed stream of income paid by the
Annuity: A deferred annuity begins in the accumulation phase
and later converts to the payout phase. You may make one or
more payments, which grow tax-deferred as long as they
remain in the annuity. Earnings are taxed as ordinary income
when they are withdrawn from the annuity.
CL Consulting, Inc. will work with you to craft Annuities that leave your
clients well provided for.