Annuities may contain a combination of pre-tax and after tax dollars depending on how they are funded. If an individual puts $10,000 of after tax dollars in an annuity and over time the annuity value grows to $20,000, the annuity now contains a combination of before tax and after tax dollars…

Other factors contributing to the amount of benefit paid out by an annuity are company expenses and investment returns. One insurance company’s investment portfolio may outperform (or underperform another company) thereby affecting payout amounts. Further, operating expenses can play a part in calculating benefit amounts. An insurer with higher operating expenses may yield lower benefit amounts to annuity beneficiaries…

The second stage of a annuity, after the accumulation stage, is the payout or annuitization stage. Once a person reaches 59.5 years of age, he or she can begin withdrawing funds from an annuity. Funds can be withdrawn in a lump sum, on a fixed period basis, or on an annuitized basis. There are many structures for withdrawal of funds from an annuity…

An annuity may be an “immediate” annuity or a “deferred” annuity. In the case of an immediate annuity, a person deposits funds with an insurer and a payout option begins “immediately” (may take 30 to 45 days). With a deferred annuity, an individual deposits funds (in a lump sum or through contributions over time) and “defers” annuity benefits until a later date, such as retirement…

At McCarthy Stevenot Agency, Inc., we can help answer your questions about annuities, and provide you with access to a wide variety of fixed annuity products.

An annuity is a financial device that pays an income stream to an “annuitant” or insured individual for a specified period of time.
Payments may be for as long as an annuitant’s [...]