Annuities

Are you ready to explore your options in regards to annuities?  Here at Janette L. Davis, CPA, we take pride in providing thorough financial planning services that cater to your unique needs and financial goals. As you plan for retirement, annuities can be a crucial tool in working toward obtaining a steady income stream throughout your golden years. However, understanding the intricacies of annuities and selecting the right one for your individual circumstances can be a difficult task if you’re not familiar with annuities. Our team of financial professionals is dedicated to clarifying the world of annuities, guiding you through the process, and helping you make informed decisions about your financial future. At Janette L. Davis, CPA, we understand that each client has unique financial requirements, and we are committed to providing personalized care with the goal of providing clients with confidence in their financial future. 

An annuity is a contract between an individual and an insurance company. In exchange for a lump sum of money or a series of payments, the insurance company guarantees a stream of income for a set period or for the remainder of the annuitant's life. An annuity can be funded with after-tax dollars or with funds from a qualified retirement plan.

When an individual purchases an annuity, the premium that is paid is invested by the insurance company which allow interest to be credited to the annuity contract.  When the policy owner chooses to take payments, the amount of payment received will be a combination of the premiums contributed to the policy and the interest credited (minus fees, if any are applicable.)  Interest crediting methods for annuities can be fixed, the use of indexes, or variable sub-accounts. 

Annuity rates are based on several factors, such as the age and gender of the annuitant, the type of annuity, and prevailing interest rates. Insurance companies use actuarial tables to calculate the expected lifespan of annuitants and adjust the rates accordingly.

The amount of income paid out by an annuity depends on several factors including the age and gender of the annuitant, and the type of annuity. Annuities can provide a fixed income or a variable income, which can fluctuate based on the performance of the underlying investments.

One of the main benefits of annuities is that they can provide a guaranteed stream of income at any time the policy owner elects to take the income, typically at retirement, which can help alleviate concerns about outliving savings. Annuities can also offer tax-deferred growth, meaning that you won't pay taxes on the earnings until you start receiving payments. Additionally, annuities can offer death benefits that provide a payout to your beneficiaries in the event of your death.

At Janette L. Davis, CPA, we understand that annuities can be complex and confusing. Our team has the knowledge and experience to help you navigate the world of annuities and find options to meet your individual needs. We take the time to get to know our clients and their unique financial situations so that we can provide personalized recommendations. We prioritize our clients' financial well-being and are committed to providing the highest level of professionalism and care. With Janette L. Davis, CPA, you can feel confident that your annuity needs are in good hands.

Annuities can provide a source of income during retirement, and Janette L. Davis, CPA is here to help you explore this option. Our team has the knowledge and dedication to guide you through the annuity process and help you make informed decisions that align with your financial goals now and through retirement. Contact us today to schedule a consultation to find out how we can provide you the financial assistance you need.

Index annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Any guarantees offered are backed by the financial strength of the insurance company, not an outside entity. Investors are cautioned to carefully review an index annuity for its features, costs, risks and how the variables are calculated.

The guarantee of the annuity is backed by the claims paying ability of the issuing insurance company

Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.

There is a surrender charge imposed generally during the first 5 to 7 years that you own the contract. Withdrawals prior to age 59 ½ may result in a 10% IRS tax penalty, in addition to any ordinary income tax. The guarantee of the annuity is backed by the financial strength of the underlying insurance company. Investment sub-account values will fluctuate with changes in market conditions.

An investment in a variable annuity involves investment risk, including possible loss of principal. Variable annuities are designed for long-term investing. The contract, when redeemed, may be worth more or less than the total amount invested. Variable annuities are subject to insurance-related charges including mortality and expense charges, administrative fees, and the expenses associated with the underlying sub-accounts. Investors should consider the investment objectives, risks and charges and expenses of the variable annuity carefully before investing. The prospectus contains this and other information about the variable annuity. Contact Janette L. Davis, CPA at (954) 967-0969 to obtain a prospectus, which should be read carefully before investing or sending money.

Investment products and services are offered through Cetera Financial Specialists LLC. Neither Cetera nor it's representatives offer legal or tax advice.

All tax and accounting services are offered solely through Janette L. Davis, CPA, LLC.