Investment Only Annuities | Investment-Only Variable Annuities | Low Fees
Reach Your Retirement Goals with an annuity exchange from Investment Only Annuities Annuities designed for income, saving, investing retirement.
Cut costs and reduce the complexity of your Variable Annuity:
An investment only annuity is a financial product that allows an individual to make regular or lump-sum payments into an account, with the funds then invested to potentially grow over time. The individual can then withdraw funds from the account at a later date, typically after reaching a certain age or upon retirement. Unlike traditional annuities, which also provide a guaranteed stream of income, an investment only annuity does not provide a guaranteed return or income stream. Instead, the performance of the investments within the annuity will determine the amount of money the individual will receive when they withdraw funds.
Annuities Are Tax-Deferred:
Because an annuity is tax-deferred, you won’t pay taxes until you withdraw your money. Deferred annuities take advantage of this situation by allowing your savings to grow until you start receiving income distributions. In the process, that growth can potentially experience growth of its own, with the gains compounding over time.
The opportunity to achieve tax-deferred growth can make a substantial difference in your income in retirement. For example, a $100,000 purchase payment compounded at a 5% rate annually for 20 years would grow to $265,330. If you withdrew that money in a lump sum and paid a 32% tax rate on it, you would come out with $212,424. By comparison, if you put $100,000 into a taxable investment account, you would end up with only $149,765 in that time.
Get Stable Growth as You’re Approaching Retirement:
IOA can aid you in preparing for retirement. They create a future stream of income. Low cost annuities can help you save more for retirement.
What are Investment-Only Annuities?:
Investment-Only Annuities (IOVAs) provide a low-cost, tax-deferred solution in addition to your 401(k) or IRA investments. The investments in the Investment-Only Annuities (IOAs) are diversified, which means that your funds are invested in uncorrelated asset classes, lowering your overall investment risk.
Why should you choose Investment-Only Annuities?:
Unlike traditional variable annuities, the IOVA’s charge lower fees as IOVA’s do not involve additional benefits, such as death benefits or guaranteed minimum withdrawal benefits. If you have already reached the maximum investment limit of investment in 401(k) or other retirement accounts, you can choose IOVAs to further top up your tax-deferred retirement savings. Investing in IOVAs is particularly useful if:
You fall in a higher tax bracket but expect to be in a lower income tax bracket at the time of your retirement.
You want to increase your investments in tax-deferred accounts along with your 401(k) and IRA accounts.
You want to have diversified investments at a lower cost than traditional variable annuities.
You want to leave a legacy for your loved ones.
You want to maximize the benefit of tax deferrals, particularly during the last 10 years of your employment before retirement.
You have a high proportion of tax-inefficient investments.
Making Money by Exchanging Your Annuity:
Annuities are great investments; we invest in them because investment only annuities can provide us with lifelong growth and distributions. With fixed income annuities, we can receive a guaranteed rate of return which means a steady income for our retirement. However, for many, especially in high-income brackets, the tax benefits are often the best reason to invest in annuities. Annuities allow you to invest tax-deferred with no contribution limits like those of 401(k)s and IRAs. Those close to retirement that have maybe waited a bit too long to invest can catch up, only paying tax when funds are withdrawn.
The two downsides to some annuities are that they can be hard to understand, and their fees can be high. If you already have an annuity, you need to check its fees. High fees (in excess of 4%) can make annuities expensive compared to other retirement accounts. Fortunately, Investment Only Annuities focuses on low fee variable annuities, which can save you thousands over your investing lifetime.
Exchanging Your Annuity:
If you already have an annuity that is charging you high fees, don’t worry; there is a process called a 1035 exchange that allows you to take the money invested in a high fee annuity and move it to one with lower fees or with a different goal that better fits your desired outcome. A similar process can be done with whole life insurance and convert it to a low fee investment only annuity as well. With a 1035 exchange qualified annuity, you won’t have to pay any tax penalties. The sooner you do an exchange to an investment-only annuity, the better because the fees you are paying are eating away at the gains of your investment.
Exchanging the Right Way:
Our goal at Investment Only Annuities is to make sure our clients always make knowledgeable decisions; here are some important things to keep in mind when making a 1035 exchange:
● Take into account why you purchased the original annuity and why it may no longer meet your goals, your intentions were correct, but someone maybe sold you a high fee annuity. Were you looking for guaranteed growth, a legacy, tax deferment, or market upside, and do those goals still match your needs. Now is the time you can change them.
● Know your current annuity’s surrender schedule and penalty-free period. Fixed annuities usually have a surrender schedule equal in duration to the contract’s investment term lasting 7 years, and at least a 30-day window to do an exchange penalty-free; knowing these can help you get the best return on your exchange. ● Make sure you understand the annuity you are exchanging in to. At Investment Only Annuities, we will walk you through all of the ins and outs of your new annuity. Ensure you know what you are investing in and that it really is what you want and need to meet your retirement goals.
contact:
email: info@investmentonlyannuities.com
phone: 1-888-694-4015
address: 500 Capitol Mall, Suite 2350 Sacramento, CA 95814, USA
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