"Blueprints for Life"
203 753 9071
Annuities
Annuities
An annuity contract is created when an individual gives the insurance company money which may grow tax deferred and then can be distributed back to the owner in several ways. The defining characteristic of any and all annuity contracts is the option for a guaranteed distribution of income until the death of the person or persons named in the contract.
IRA's
Individual Retirement Account (IRA) is like a trust or custodial account. There is a trustee or custodian that looks over your funds, such as a bank, mutual fund, savings institution, etc. The trustee invests your money according to the plan that you have selected.
• Traditional IRA:This is a personal savings plan that offers tax advantages to set aside money for retirement.
• Roth IRA:A personal savings plan that offers the potential for contributions and earnings to grow tax-free for retirement.
• SIMPLE IRA:A Savings Incentive Match Plan for Employees (SIMPLE) is an employer-sponsored retirement plan that requires an employer matching or non-elective contribution, and also allows employees to defer a portion of their compensation.
• SEP IRA:A Simplified Employee Pension Plan (SEP) is an employer sponsored retirement plan funded by the plan sponsor, who makes contributions to IRAs for participants.
Employer Retirement Plans
A 401(k) plan is a retirement savings plan that is funded by employee contributions and (often) matching contributions from the employer. The major attraction of these plans is that the contributions are taken from pre-tax salary, and the funds grow tax-free until withdrawn and the plans are (to some extent) self-directed, and portable.
• 401(k):Any small to large employer including nonprofit and for-profit businesses and Indian tribes that want to offer a salary reduction plan with many design options. (Governmental employers are in-eligible).
• Individual 401(k):Self-employed individuals or small business owners who want to maximize retirement savings and have no full-time employees other than a spouse.
• 403(b):The 403(b) program, often called a Tax Deferred Annuity (TDA) or a Tax Sheltered Annuity (TSA) program, is an employer-sponsored retirement plan that may be funded with employee salary deferrals and/or employer contributions.
• 412(i):Defined benefit plan funded exclusively by a level premium individual annuity contract or through both an annuity and life insurance contract that fully guarantee amount of benefit payable at retirement.
Non-Qualified Annuity
A personal deferred annuity is a contract purchased from an insurance company. It provides the owner with tax advantages in exchange for setting aside money for retirement.
Annuity Products
Variable Annuity:
 This enables you to invest in a selection of portfolios. You can allocate your investments according to your comfort level. They can range from conservative to aggressive and everything in between.
Fixed Annuity:
 Fixed annuity as invested primarily in government securities and high-grade corporate bonds. They offer a guaranteed rate of return, typically over a period of one to fifteen years.
Immediate Annuity:
 With immediate annuity the investor begins to receive payments immediately upon investing. You can choose between payments for a certain period of time (typically five to twenty years), payments for the rest of your life and /or spouse's life, or any combination of the two. You can even choose between a fixed payment that doesn't vary or a variable payment that is based on market performance.
Deferred Annuity:
 Here you typically receive payments starting at some future date, usually at retirement. You can invest either a lump sum all at once, or make periodic payments, either fixed or variable. Funds grow tax-deferred until you are ready to begin receiving payments.
The Freeman Group  |  1525 Hamilton Ave  |  Waterbury, CT 06706Phone: 203 753 9071  |  Fax: 203 575 0442
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