Wednesday, October 8, 2014


What is an annuity? An annuity is an insurance contract that allows the owner to accumulate funds on a tax-deferred basis and take distribution when desired. The benefit of an annuity is that it provides income you cannot outlive. This is a simple way to distribute your estate directly to a beneficiary.

There are several types of annuities.
A flexible premium deferred annuity is one that accumulates tax-deferred earnings for your future at competitive interest rates. The flexible payment schedule allows for future contributions. FPDA can also be used to fund an IRA. The tax begins when you start withdrawing. Keep in mind, you will pay tax according to your age bracket.

Single premium deferred annuity is when you decide a one, three, or five year guarantee period will work best for you. Your account then locks in at the interest rate available for that guarantee period.
A SPDA is ideal for people with accumulated assets to invest. A SPDA is a one-time premium payment with a guaranteed interest rate. Tax is deferred until you begin withdrawals.

Single premium immediate annuity offers stable protection and provides immediate income. A SPIA is ideal for people wishing to liquidate accumulated assets, can be used for retirement and can provide payments covering two lives.

Whether you decide on a annuity or life insurance a licensed, experienced insurance representative is available for your financial planning needs.

To learn more, please visit

Start planning,

Trisha M. Pacenti RN,BSN