A tax-deferred fixed
annuity is an insurance contract between an individual (or trust) and an
insurance company. Fixed annuities offer guaranteed fixed interest
accumulation year after year. Deferred annuity policies increase in
value every year GUARANTEED! They are a safe alternative for your
How to Apply /
Quote / Contacts /
WHAT IS A DEFERRED ANNUITY USED FOR?
Deferred annuities are primarily used as an accumulation vehicle for
retirement savings. The most used type of single premium deferred
annuity is the Multi-Year Guarantee Annuity.
The MYGA has an initial term
from 1-10 years. The rate on a MYGA is set at issue and will not
change during the initial term.
the initial term, the full accumulation value is available for
withdrawal or transfer. This gives the
ability to know the exact account value at any time in the future. An
advantage to the MYGA is the comfort in knowing the rate will not reduce
during the initial term and after the initial term the full accumulation
value is available for withdrawal or transfer.
An MYGA is a guarantee for
your financial future.
postponing your taxes on interest earnings until a future point in time.
In the meantime, you earn interest on the money you're not paying in
taxes. You can accumulate more money over a shorter period of time,
which ultimately will provide you with a greater income.
an MYGA, taxes are not paid on the interest earned until a withdrawal is
made, unlike a bank CD where interest is taxed annually. (Please
note that money not previously taxed is taxed as income when withdrawn.
Withdrawals from a Tax-Qualified Plan before age 59˝ may be subject to a
10% federal tax penalty.)
illustrate - the increased earnings capacity of tax-deferred interest
compared to fully-taxable earnings. $100,000 at 6.0% will earn $6,000 of
interest in a year. A 30% tax bracket means that approximately $1,800 of
those earnings will be lost in taxes, leaving only $4,200 to compound
the next year. If these same earnings were tax-deferred, the full $6,000
would be available to earn even more interest. The longer you can
postpone taxes, the greater your gain.
How Effective is
Interest earnings in a
fixed annuity accumulate free from current taxation until you make a
withdrawal. This can have a significant impact on the growth of
your savings over time.
example assumes a hypothetical $100,000 initial allocation, a 5.5%
annual rate of return, and a 28% tax rate. (The actual tax results of
any distribution will depend upon an individual’s personal tax
circumstances.) This illustration is hypothetical and not intended to
reflect the past or future performance of any product.
SAMPLE MYGA RATES
Year Initial Term MYGA
(Terms range for 1-10 years call 800-373-9697 for
Assuming no withdrawals are made, a $100,000 premium placed into an MYGA
with a guaranteed rate of 3.00% for 6 year initial term would grow to
$119,405 after 6 years, based on rates as of 04/22/2016. That is over a
19.41% gain on the initial premium after the 6 years, GUARANTEED.
There is a wide variety of MYGA annuities available and FSD Financial
shops the market constantly to find the highest rates with the strongest
companies. Give the annuity experts at FSD Financial a call or
email them for personalized service. FSD wants to help ensure that you
find the most suitable product for your retirement needs.
Click here to
see current fixed annuity rates
ADVANTAGES OF TAX DEFERRED FIXED ANNUITIES
ADVANTAGES OF GUARANTEED FIXED RATES
Fixed annuities offering competitive interest rates are insurance
products. The "insurance" part of fixed annuities make up the long term
guarantees. Like a bank CD, fixed annuities offer a guaranteed rate for
a specified period or term. The difference is at renewal, unlike a CD,
fixed annuities are guaranteed. They will never renew below a certain
rate. The minimum guaranteed rate is set at issue.
There are no charges or fees on any Single Premium
Deferred Annuities. All funds go to work immediately, no upfront or
back-end loads. Rates quoted are net of all expenses.
Most deferred annuities allow for an annual penalty free withdrawal. The
free withdrawal is a percentage of the accumulated value, usually this
percentage is between 3% and 10%. Early withdrawal charges may apply on
amounts withdrawn in excess of the free withdrawal provisions within the
Fixed annuities are guaranteed by the claim paying ability of major, top
rated life insurance companies. We will provide financial information on
all carriers we represent. (Company ratings represent an opinion
of financial strength and the company's ability to meet ongoing
obligations to policyholders.)
Interest rates inside a fixed annuity are guaranteed. Principal and
annuity purchase rates are also guaranteed. Some fixed annuities offer a
money-back guarantee at anytime.
At death, the annuity may be transferred to named beneficiaries,
avoiding the probate process.
Not all products are approved in every state. Check with us for state
Consider a fixed annuity if you want to transfer or rollover other older
retirement accounts. We can assist in rolling over old 401Ks or other
employer plans. We also assist in tax free exchanges for existing
annuities via a 1035 exchange.
Is an annuity right for you? Do you have additional liquid assets
available in case of unseen needs? Annuities should be viewed as
long-term financial instruments.
Please be aware that withdrawal charge periods
may last from 1-10 years. These features will be clearly disclosed.
However, some companies waive the withdrawal charge in the event of
nursing home, premature death or annuitization on many of their fixed
annuity products. (Annuitization covers accumulation valued to a
guaranteed income stream.
information on deferred annuities.
How To Apply
FSD Financial is
available to assist with the application process (M-F 9am -4:30pm PST)
- We will UPS/FedEx all paperwork with a pre-paid
return overnight envelope.
- Information provided by you on the application
kit will begin the process of issuing a contract.
- Our insurance experts will help fill out the
application kit and suitability form as answers must be complete and
This website is for illustrative
purposes only and is not a contract.
When you are issued Fixed Annuity
Insurance, you'll receive a Contract
or Certificate of Insurance. The
Contract / Certificate provides you
with detailed information on the
annuity you have chosen. It also
gives you 10 - 30 days to review
your coverage to make sure it's
exactly what you expected. If you're
not satisfied, for any reason, just
return your Contract / Certificate
of Insurance to the FSD Financial
Services office. You will be able to
free look the contract.