America needs annuities

By Paul Cross

Annuity National Brokerage Co.


Annuities are productive and growth oriented, with streams of income for life. For decades, the greatest fear among investors was running out of money during retirement and now, so many are going bust before retirement. Annuities are productive and growth oriented even during recession. And, not a day too soon, you can now establish annuity trusts, converting tax dollars into streams of income for your family heirs.

Today, many people are forced into early retirement before they become eligible for Social Security. They are spending down their IRAs and 401(k)s. Annuities can help people forced into early retirement with income guaranteed for life — income you cannot outlive — with spousal survival benefits.

Annuities, the oldest money contract, date all the way back to the days of the Roman Empire, when gladiators traded money and property for annuities to assure an income for their family should they not return from the wars and the deadly games they so proudly played.

In the 1800s, the European banks issued annuities. In the early American days, the railroad companies issued employees retirement annuities — that was, until the employees got railroaded with pension plans.

Annuities remain the safest money contract available, backed by strong statutory reserves with special tax advantages. The traditional tax-deferred annuity provides the opportunity to develop an automatic re-investment cash flow with tax dollars compounding with interest tax deferred.

Annuities are helping people enjoy more income, more growth and less tax, including less tax on Social Security income. They provide retirees with sleep insurance and peace of mind by putting to rest the fear of outliving one’s money.

You can grow tax-deferred annuities into a rather large sum on which you have never paid tax and establish annuity trusts converting tax dollars into streams of income for your family heirs. It’s something everyone should look into today.

Your remainder in annuities goes directly to your named beneficiaries, outside the probate courts, in a single lump sum, or in a designated lump sum with the balance plus growth paid to the beneficiary over their life expectancy. Now that’s a no-cost annuity-trust.

Outside the probate courts

A great, big advantage: Your money in annuities is paid directly to your named beneficiaries outside the probate courts, avoiding court costs, legal fees and creditor claims.

In these uncertain times, annuities provide stability, income, growth and great advantages not available today in other money contracts.

Disclaimer: This article is relative to traditional fixed annuities and fixed-indexed annuities and does not apply to the variable annuity that has an element of risk, mortality costs and annual fees.