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   fixed annuities

Product Information

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 The earnings grow tax-deferred until withdrawn at which time they are taxed as ordinary income.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.

        Immediate 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 insurance company.

        Deferred 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 Earnings are taxed as ordinary income when they are withdrawn from the annuity.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.


 

 

   

 

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