Annuities In a High Value Portfolio

Annuities are uniquely effective tools for high net worth individuals for a variety of reasons. Long the vehicle of choice amongst the wealthiest of the wealthy for transferring assets within estate trusts, annuities offer advantages to a high value portfolio that no other instrument can provide.
Freedom to Invest Aggressively
One of the biggest advantages annuities create is the ability to invest remaining assets aggressively without worry that future income/lifestyle will be negatively affected by market loss. The market can reward risk, but risk is not always palatable without a Plan B. Annuities allow a sophisticated investor to set a future income amount that can increase over time from a portion of their assets which is guaranteed to be paid regardless of market results. With that safety net, an investor is free to place the balance to achieve results that otherwise may not have been attainable. No other investment can provide the guaranteed lifetime income that can increase over time, and the freedom to pursue greater returns, that comes with annuities.
Freedom to Engage in Good Works
Similarly, when a high net worth individual’s future income is guaranteed, they have more freedom to pursue the things that create a life of fulfillment. Annuities guarantee an income that you never outlive, thus allowing you to commit your other assets without worry to support those causes most important to you. A charitable annuity is a popular vehicle with tax benefits for the annuitant. Annuities designated to benefit your favorite charity or organization upon your future death allow for effective planning today.
A choice of 9 Different Investment Indeces
Investors enjoy the challenge of choosing an investment approach that fits current market activity and trends. We offer 9 different indeces that provide the opportunity for significant gains. The annuitant chooses an initial index, and has the option of changing that index on every anniversary date based upon market conditions. Our index choices feature large cap indeces, small cap indeces, domestic indeces, international indeces, and even Pimco high yield bonds. You can mix and match your approach, or even take a passive guaranteed return. Bottom line, like stock market investments, maximizing your annuity return requires market savvy, and a degree of good fortune. Best of all, with an annuity, regardless of the index you choose, you never lose a dollar of principal and earnings. No other investment can provide the opportunity to earn 25% in any given year while guaranteeing your account value, and an income for life that can increase over time.
Ability to Safely Transfer Wealth to Beneficiaries
Many high net worth individuals have a plan in mind for the transfer of their wealth upon their death. An annuity designated for beneficiaries allows you to target a transfer amount that can grow without the risk of market loss, thus providing beneficiaries with a guaranteed future asset from which they can benefit today.  Without an annuity, market invested estate assets can be reduced by loss at any point prior to your death, and may not recover in time to deliver the intended value. Annuities guarantee a value to beneficiaries and, inside or outside of a trust, bypass probate directly to beneficiaries.
Tax Deferral and Low Fees
$100,000 invested in an annuity on January 2, 2014 with a 15% premium bonus, 50% interest bonus, and tied to the S&P 500 Index, returned $36,841 to the Protected Income Value on its anniversary date. No current taxes were due on that growth, and the total charge for the return amounted to $584 from the spread charged by the insurance company. All growth inside an annuity is realized on a tax deferred basis, thus eliminating the current taxes associated with stock market investments. That's big if you're subject to the 3.8% Medicare tax, and other high net worth taxes. Management fees and administrative charges for most annuities are less than 1%, making them significantly less costly than typical managed funds. No other investment can provide guaranteed principal and earnings, and an income for life that can increase over time, at less cost than an annuity.
From its corporate headquarters in Atlanta, Lifetime Income Store serves the financial goals of discerning clients in Georgia, Alabama, Arizona, Illinois, Oklahoma, Tennessee, and Texas. and its representatives do not give legal, tax, or accounting advice. If you need such advice, consult your attorney, accountant, or personal tax advisor.

© 2015 Lifetime Income Store, LLC