Retirement Consultants East Saint Louis IL

Seniors hold billions of dollars in deferred annuities. However, my experience is that the average person knows little about the unique advantages of deferred annuities, much less the options they have during the holding period.

Carol Johnson
Voellinger, Simpson, Dolan & Associates, P.C.
(618) 233-8515
4010 North Illinois, Suite 3
Belleville, IL
Expertises
Retirement Plan Investment Advice, Ongoing Investment Management
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, CFS

Data Provided by:
Terrance Davis
Terrance P. Davis, CPA/PFS
(314) 963-0569
8460 Watson Road, Suite 225
St. Louis, MO
Expertises
Estate & Generational Planning Issues, Ongoing Investment Management, Tax Planning
Certifications
NAPFA Registered Financial Advisor, BS, CPA/PFS, MS

Data Provided by:
James Reding
Paradigm Wealth Advisors, LLC
(314) 966-3400
12231 Manchester Road
Des Peres, MO
Expertises
Retirement Planning & Distribution Rules, Estate & Generational Planning Issues, Ongoing Investment Management, Planning Issues for Business Owners
Certifications
NAPFA Registered Financial Advisor, JD

Data Provided by:
Heidi French
Heidi French & Associates, LLC
(314) 432-1725
955 Executive Parkway, Suite 221
Creve Coeur, MO
Expertises
Middle Income Client Needs, High Net Worth Client Needs, Newlyweds & Novice Investors, Planning Issues for Unmarried & Same-Sex Couples
Certifications
NAPFA Registered Financial Advisor, CFP®

Data Provided by:
Mr. Andrew Lich, CFP®
(314) 244-0742
701 Market St Ste 1070
Saint Louis, MO
Firm
Northwestern Mutual Wealth Management Company
Areas of Specialization
Asset Allocation, Budget Development, Business Succession Planning, Comprehensive Financial Planning, Education Planning, Employee and Employer Plan Benefits, Estate Planning
Key Considerations
Average Net Worth: $1,000,001 - $5,000,000

Profession: Self-Employed Business Owners

Data Provided by:
Michael Tinkler
Cambridge Capital Management, LLC
(314) 454-0438
1200 South Big Bend
St. Louis, MO
Expertises
Ongoing Investment Management, Newlyweds & Novice Investors, Retirement Plan Investment Advice, Cash Flow/Budgets/Credit Issues, Retirement Planning & Distribution Rules, Hourly Financial Planning Services
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA

Data Provided by:
Michael Tinkler
Cambridge Capital Management, LLC
(618) 632-7574
852 Cambridge Blvd., Suite 100
O' Fallon, IL
Expertises
Ongoing Investment Management, Newlyweds & Novice Investors, Retirement Plan Investment Advice, Cash Flow/Budgets/Credit Issues, Retirement Planning & Distribution Rules, Hourly Financial Planning Services
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA

Data Provided by:
Robert Spindel
Paradigm Financial Advisors, LLC
(314) 966-3400
12231 Manchester Road
Des Peres, MO
Expertises
Retirement Planning & Distribution Rules, Estate & Generational Planning Issues, Ongoing Investment Management, Planning Issues for Business Owners, Advising Entrepreneurs, Advising Medical Professionals
Certifications
NAPFA Registered Financial Advisor, CFP®, ChFc, CLU

Data Provided by:
Elizabeth Cauble
Cauble & Harre Wealth Management
(314) 576-1112
12977 North 40 Drive, Suite 213
St. Louis, MO
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Retirement Planning & Distribution Rules, Estate & Generational Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®

Data Provided by:
Mr. Mark D. Kronemer, CFP®
(314) 342-4089
501 North Broadway
Saint Louis, MO
Firm
Stifel
Areas of Specialization
Asset Allocation, Charitable Giving, Comprehensive Financial Planning, Estate Planning
Key Considerations
Average Net Worth: $500,001 - $1,000,000



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Ten Things the Average Person Does Not Know About Annuities

Ten Things the Average Person Does Not Know About Annuities

Deferred annuities possess characteristics found nowhere else. They play an important part in seniors’ portfolios.

Seniors hold billions of dollars in deferred annuities. However, my experience is that the average person knows little about the unique advantages of deferred annuities, much less the options they have during the holding period.

When you mention the term, “annuity”, it typically conjures up thoughts of getting a small check in the mail every month from some insurance company. It is viewed as an income.

The vast majority, however, of annuities are of the “deferred annuity” variety. They are accounts designed to grow money over a period of time in a safe environment. Over 90% of deferred annuities are never “annuitized”, that is, converted to that monthly check in the mail.

So let’s take a look at some of the attributes of annuities and, in the process, clear up many misunderstandings about this vehicle.

Tax Deferred Earnings

Deferred annuities provide “triple compound interest.” There is interest on principal, interest on interest and interest on the taxes you would have paid on an investment in a non-tax deferred environment.

For example, 6% which is taxable is equivalent to an 8% non-taxed return assuming a combined federal and state tax bracket of 25%.

Safety

While deferred annuities are not FDIC insured, like a CD with a bank, they are backed by the generally billions of dollars of the insurance company’s assets. No big risks here.

A Competitive Interest Rate

Insurance companies normally set the interest rate for a deferred annuity contract annually. You will find that it is usually one to two points above CD rates. So not only do you get a higher rate but the interest is tax-deferred, unlike a CD where you pay taxes on the interest each year.

Some deferred annuities offer a rate that is guaranteed for a number of years, such as five. If you think interest rates will fall, you can lock in today’s rate.

Minimum Interest Guarantee

When you get to the end of your annuity time frame, if your annuity has not given you at least a minimum of (generally) 3% interest per year, then the insurance company will apply their minimum guaranteed rate. Nothing to get excited about, but at least you know that you can't lose money and there is a minimum interest rate that is guaranteed no matter what.

No Sales Charges

When you move money into a deferred annuity, 100% of the money goes to work for you from day one. There are no sales charges subtracted from your initial deposit.

No Annual Administration Fees

Some places to park money, like mutual funds, may have fees attached to the administration of the fund. Not so with deferred annuities.

Withdrawal Privileges

This is a source of major misunderstanding. Many people do not realize that their money is not as tied up as they think; there are a number of ways to access funds without s...

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