What is an annuity?
An annuity is a long-term retirement savings product that can help protect you from outliving your money. It has the potential to grow tax-deferred, have death benefits to protect your beneficiary and optional living benefits to protect your retirement income. You can choose how to fund your annuity, how interest is credited to it and how you take payments from it.
What can an annuity do for you?
A fixed indexed annuity has the potential for higher interest earnings than a traditional fixed annuity with a guaranteed minimum interest crediting rate. There’s also no direct downside market risk to your money, if held through the withdrawal charge period.
Helps you sleep better
An annuity can help you save money on a tax-deferred basis and can guarantee you'll receive income for life. So no matter how long you live, you won't outlive your retirement income.
Fills in the gaps
Pensions, IRAs and Social Security may not provide enough income to help you live the way you want during retirement. An annuity will help supplement your retirement income.
Do I need an annuity?
You're saving for retirement
If you're already contributing the maximum to other retirement plans, like an IRA or 401(k), a fixed indexed annuity is an attractive retirement planning option that grows tax-deferred.
You won't need the money soon
If you don't anticipate needing the money from a fixed indexed annuity prior to the time you turn 59½, then a fixed indexed annuity may be a good option for you.
You're worried you might outlive your savings
Annuities can provide guaranteed income for the rest of your life, whether you live to be 100 or even 120.
You want to leave a legacy
With an annuity, you can provide your loved ones with a death benefit in the event of your death.
What types of annuities do you offer?
Fixed Indexed Annuities
Pursue upside potential without sacrificing security.
With fixed indexed annuities, the interest rate on a portion of your premium is tied, in part, to a published stock, bond, or market index, giving you the opportunity to benefit from market trends without owning stocks. Your principal is protected from loss due to market downturns. Annuities may also include or offer optional riders that can be free, or purchased for a charge. Rider features vary by product, and can offer benefits like lifetime income, increased liquidity, or a death benefit option.
Multi-Year Guarantee Annuities (MYGA)
Protect and grow your savings. Plan with confidence.
Multi-year guaranteed annuities provide you with tax-deferred growth at a fixed rate of interest set for a period of time spelled out in the annuity contract. They also offer the opportunity to produce a guaranteed stream of retirement income you cannot outlive.
Single Premium Immediate Annuities (SPIA)
Income you can count on.
Single premium immediate annuities make retirement planning easier because they're predictable. In exchange for a lump sum of money (Single Premium), a SPIA pays a guaranteed amount for a specified time period or until you or your spouse dies.
Who can sell annuities?
Annuities can only be sold by licensed insurance professionals who completed product specific training. The agent must be a representative of the insurance company and must hold a valid insurance license in your state. Agents and representatives are compensated by the insurance company. No sales compensation is ever deducted from your annuity principal.
What is the tax treatment on annuities?
Under current federal law, annuities receive special tax treatment. Income tax on annuities is deferred, which means you are not taxed on the interest your money earns while it stays in the annuity. Earnings are taxable as ordinary income when distributed; and if withdrawn before you turn 59 ½, a 10% tax penalty may be enforced. Neither American Equity nor any of its agents or representatives are authorized to give tax advice. You should consult a professional tax advisor to discuss your individual tax situation.