You know what’s awesome? The 1971 Uniform Monday Holiday Act. You may not be familiar with this little piece of legislation, but chances are you’ve enjoyed the three-day weekends that it has generated. One such weekend is upon us, as we celebrate Presidents’ Day.
It’s hard to think of presidents without conjuring up an image of the Secret Service. You know, the simple characters that quietly blend into the background, but watch everything that is going on. They stealthily and effectively dissuade untoward activity, all the while offering a presence that guarantees protection at all costs. All presidents deserve this Secret Service type of protection, especially the presidents that you carry around in your wallet.
An annuity policy is like the secret service for the presidents in your wallet that you have earmarked for retirement. An annuity policy can surround your retirement dollars with protection and help provide strength and stability even when economic conditions are volatile. There are different types of annuities. With a fixed indexed annuity policy, you take advantage of contractual guarantees1 that the policy will grow at a predetermined rate. And, while the interest earned on a fixed indexed annuity is based on the changes in a market index, the guarantees of the contract ensure that even if the market is negative the money in your annuity does not lose value. 2
Whether you enjoy the long weekend afforded by the Presidents’ Day holiday to join your friends and neighbors in patriotic celebration or if you decide to take advantage of the discounts offered by area retailers, also take some time to reflect on presidents past, present and those in your wallet. If you think that you would like to protect a few of those wallet presidents, consider learning more about annuities.
1 Guarantees are dependent on the claims paying ability of the issuing company
2 Assumes no early withdrawals
For non-qualified annuities purchased with after-tax dollars, withdrawals of earnings prior to age 59 ½ may be subject to a 10% Federal Tax Penalty. Withdrawals from an annuity are taxable as ordinary income only to the extent there is a gain in the policy. Withdrawals beyond 10% of your accumulation value are typically subject to surrender charges during the early years of the contract.
An Indexed Annuity (IA) is usually a fixed annuity whose interest is determined, at least in part, by the performance of a specified index of the market. Unlike traditional fixed annuities, the policyowner may receive zero interest for a single period on a specific premium payment if the index performs poorly. However, with most designs, the premiums are protected and guaranteed to grow over time, and the owner of an equity indexed annuity may experience better interest crediting than a traditional fixed annuity during periods when the market performs well. Indexed annuities do not directly participate in any stock or equity investments. An investment cannot be made directly into an index. This is not a solicitation of any specific annuity contract.