50+ Lifestyles

Bonus Annuity remains throughout March

By Richard J. Schillig, CLU, ChFC, LUTCF
Independent Insurance and Financial Advisor

A 35% bonus on our annuities continues throughout the month of March. Recall this very lucrative bonus? Bonus remains for both qualified and non-qualified money. To receive this bonus the minimum investment is $5,000 maximum investment is $1,000,000.

Recall annuities are a powerful addition to a savings plan, especially since they offer the combined benefits of tax deferral, compounding and protected income generally not present in other investments. The tax-deferral is made more powerful because by not paying taxes on the asset each year, a larger dollar amount will compound going forward. To be clear, all qualified accounts, including IRAs receive tax-deferral compounding. The annuity advantage over taxable products is that no IRS 1099 form is triggered until a withdrawal is made and the portfolio attains a level of protection.

Further annuities provide tax deferral even when funded by after-tax dollars. When any funds (before or after tax) are placed in an annuity, taxes on gains are not due until a withdrawal is made, often later in life and at a lower tax bracket. However, even if one’s tax bracket remains the same over time, it is still better to pay taxes later. Keep in mind, the purchase of an annuity within a retirement account such as IRA, provides no additional tax deferred benefit beyond that provided by the retirement account itself.

Annuities are available for both qualified and non-qualified plans. There are no contribution limits with after-tax (non-qualified) annuities – except those that may be imposed by the insurance company – effectively allowing for tax deferral and compounding on a larger dollar amount. Conversely, the IRS imposes annual contribution limits on traditional plans such as 401Ks, 403Bs, IRAs may hamper an investor’s ability to save. But remember the non-qualified annuity has no limit on contributions. And shares in the benefits of tax deferral, compounding, and protection.

We currently have available a special index annuity that is offering a 35% bonus. Remember Warren Buffett’s quote that “investing is simple, just not easy”? At times, it’s easy to
overlook the simple things. While compounding and tax deferral are not new, they are key investing concepts. Now add that tremendous bonus to help maximize returns.

Recall our split annuity concept? Let’s review! No insurance company issues a “Split Annuity.” But there is a plan in which a sum – rather qualified or non-qualified money is divided between an immediate and a deferred annuity. The immediate annuity of course provides an immediate monthly income and is spent down to $0 at the end of the immediate annuity period (typically 5 to 7 years). While the immediate annuity provides income, a second part of this ‘split’ is a deferred annuity that replaces the income received from the immediate annuity. Encourage you to call us or send us an email requesting additional details on this wonderful strategy. Call us at 563.332.2200 or email. Go to my website www.dickschillig.com – scroll over to the contact icon to receive email address.

That 35% bonus will enhance split annuities’ objective of replacing income. Recall the ‘split annuity’ distributes income from the immediate side of the split. While this is going on a deferred annuity is designed to replace the income distributed from the immediate side of the split annuity arrangement.

We have been in business for a long-time and I’ve used the “split annuity” arrangement for clients wanting income but concerned with the income eventually spending down annuity assets. Arranged properly the ‘split annuity’ will accomplish the objective of replacing income as it is being distributed from the immediate side.

We continue offering our monthly virtual Community Meetings on Medicare. Craig at our office continues to offer these very informative programs. Remember with these meetings you remain in the privacy of your own home using your own computer equipment to participate in these meetings. March meetings are available on 19th and 21st. Contact Craig at our office 563.332.2200 to receive instructions on how to participate in the virtual Community Meetings.

Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJS and Associates, Inc. He can be reached at (563) 332-2200.