Your Home for Safe Money
The Small Business Doctor, Inc. is proud to devote this section of our website to helping you understand how to use Safe Money concepts as part of your overall Financial Wellness plan. We offer free educational information that can help you determine whether annuities are suitable to help you reach your financial goals.
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What is an Annuity?
Annuities are not new. In fact, they've been in existence for well over two hundred years. Benjamin Franklin used them successfully to provide long-term income for his wife, and also to financially sustain the cities of Boston and Philadelphia. Babe Ruth survived the 1929 stock market crash unscathed because his fortune was secure in annuities, not in stocks. The Safe Money principles behind annuities have worked for a very long time. Depending on your situation and goals, they may be able to help you, too.
Annuities allow you to accumulate tax-deferred funds for retirement. If you choose, you can receive a guaranteed income ("Annuitization") payable for life or for a specified period of time. (Generally a term of five or ten years.) They are offered by insurance companies and sold through licensed agents. Both the companies and agents are evaluated and licensed through their home state.
State Insurance Commissions scrutinize insurance companies to ensure they have reserve funds, (commonly referred to as State Legal Reserve Pools), in place to protect investors before granting insurance company licenses. If an insurance carrier goes out of business, other carriers licensed in the state must assume the bankrupt insurer's obligations and liabilities. (Note only Fixed Rate Annuity holders are fully protected. Some Variable Annuity owners may have limited protection - it depends on their particular annuity.)
Annuities are very similar to CDs offered by banks. Just like banks, insurance companies offer different rates and returns on annuity investments.
Advantages of Annuities:
Reasons to invest in Annuities:
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Safely create wealth for your heirs
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Enjoy tax-deferred growth
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Guarantee both principal and interest
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Spare your heirs from dealing with probate
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Increase your death benefit
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Participate in stock market gains without risk of loss
Annuities are not for everyone, and not all annuities are the same. We encourage you educate yourself about these highly versatile investments to find out if they're right for you. We offer a number of FREE educational materials to help you get started on the path to Financial Wellness.
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