Annuities have been around for a long time.


Immediate Annuities		Deferred Annuities

The annuity is the only investment that can
guarantee you payments for the rest of your life!

Think of your money as irreplaceable at this stage in your life. If you lose it, it is gone forever. Therefore, you should treat your money just like you would treat your very pretty teenage daughter - whenever your money is going out of your sight you want to know who it's going with, what it's going to be doing and when it's coming home.

Unexpected Financial Problems?

History of The Annuity

While annuities have become extraordinarily popular in modern times, they are not new. In fact, the annuity can actually trace its origins back to Roman times.

Contracts during the Emperor's time were known as annua, or "annual stipends" in Latin. Back then, Roman citizens would make a one-time payment to the annua, in exchange for lifetime payments made once a year. That payment arrangement closely resembles today's immediate annuity offered by insurance companies.

The annuity made its first mark in America during the 18th century. In 1759, a company in Pennsylvania was formed to benefit Presbyterian ministers and their families. Ministers would contribute to the fund, in exchange for lifetime payments.

Nowadays, annuity contracts are issued by life insurance companies. Because of the preferential tax treatment afforded the life insurance companies, the annuity contract offers the purchaser a tax-deferred savings vehicle.

The fixed annuity buyers - Immediate, Deferred. Equity Indexed Annuity (EIA)

Who owns annuities?

A 2005 Gallup Survey of Owners of Annuity Contracts reports that the Americans who have chosen this retirement savings option have moderate incomes (66% have annual household incomes below $75,000). There are slightly more women than men (56% vs. 44%), and most are retired (58%). Although their average age is 66, the average age at which owners purchased their first annuity was 50.

Why do Americans own annuities?

According to the same Gallup Survey, annuities are seen as a way to provide their owners with additional retirement income (78%) and as a financial safety net in case they or their spouse live well beyond their life expectancy (83%).

What do owners think about the importance
of tax deferral to savings for retirement?

Most non-qualified annuity owners believe they have done a very good job of saving for retirement (87%). Nine in ten non-qualified annuity owners agree that the current tax treatment of annuities encourages long-term savings (91%), and that annuities are an effective way to save for retirement (90%).

Fixed Annuity versus Variable Annuity

There are two basic annuity categories ... fixed annuity ... variable annuity.

BenefitsLab expertise is with the fixed annuity, i.e. Immediate Annuity, Deferred Annuity and Indexed Annuity. We prefer to leave the variable annuities to the investment brokers and leave it up to them to make the comparisons and guessing as to which ones will outperform the others.

There are considerations for having the immediate annuity in a retirement portfolio.

Want More Info? ... Russ Swallow ... 508-831-0805
(or use e-mail address below)

Neither Russ Swallow, FutureSeniors or BenefitsLab Insurance Agency, Inc. are Registered Investment Advisors nor are we licensed to sell securities. We do not offer investment advice nor do we participate in any fees derived from any other advisor’s investment advice. We are a Professional Employee Benefit Consultant and Broker and our sole source of income is derived from commissions based on common-sense insurance recommendations.