Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...
Indexed annuities monday night training
1. The Power
of
Indexed Annuities
Agent use only- not for use with the public
2. What is an Annuity?
Stream of payments in or out
…an annuity contract is created when an
individual gives a life insurance company
money which may grow on a tax-deferred
basis and then can be distributed back to the
owner in several ways.
Agent use only- not for use with the public
3. Two basic phases of annuities
I. Deferred: customer deposits and accumulates
money into an account (the deferral phase)
II. Customers receive payments for some period
of time (the annuity or income phase).
Immediate or annuitization
Agent use only- not for use with the public
4. Types of Annuities
Deferred - Immediate
Fixed – Fixed Indexed - Variable
Qualified - Non-Qualified (IRA)
Tax Sheltered Annuities, TSA & 403b
Referred to as
FPDA (flexible premium deferred annuity)
SPDA (Single Premium Deferred Annuity
SPIA (Single Premium Immediate Annuity)
Agent use only- not for use with the public
5. Advantages and Disadvantages
59 ½ restrictions. 10% penalty
Long Term
Tax deferral
Don’t have to pay tax each year unless you take
the money out
Agent use only- not for use with the public
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9. TIC-TAC-TOE
2%-4%? Upside
Potential
Fixed Indexed Variable
Products Products Products
Safety of Risk of
Principal Principal
Agent use only- not for use
with the public
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21. Bank
• $200,000
• @ 4% currently about 1%
= $243,250 In 5 years
• $9,730/yr. which is a
• $810/mo. monthly pension
Maybe less hardly more
22. Insurance Contract
$200,000 Deposit with a strong, highly rated, insurance company
8% Guaranteed upfront bonus
$16,000
8% Guaranteed interest every year
$317,250 Guaranteed growth in 5 years
6% Guaranteed annual pension for as long
___ as she lives
$19,100 Guaranteed a year or
$1,518 Guaranteed monthly pension
Could be more, Guaranteed not to be less
23. Which would you choose?
• Stock Market ????
• Bank $810 per month
• Insurance Co. $1,518 per month
The Insurance Co. minimum is guaranteed
and that is 94% More than the Bank
Bank is not Guaranteed as to amount (@4%)
24. Commission
Example: Mary’s lump sum
VP- Vice Pres.
• Personal Sale $16,000
• Team Sale
– Teammates he/she makes $12,000
– You make $4,000
