American Equity Annuity
American Equity offers both traditional fixed annuities and indexed annuities; these latter options provide principal protection from index volatility while offering growth opportunities and guaranteed income payments.
IncomeShield series from Prudential is their premier offering among indexed annuities, featuring access to Wellness Benefit features as well as no withdrawal charges beginning year two.
What is an annuity?
An annuity is a contract that provides you with income payments over the long-term, typically for life or a set number of years, like 10 years. Most commonly purchased with after-tax dollars; its value grows according to an insurer-set rate.
American Equity provides an impressive variety of annuity products. Their offerings consist of fixed and immediate annuities as well as indexed annuities.
Fixed index annuities combine the security and potential returns of traditional fixed annuities with those offered by traditional stock market index funds, providing investors with greater potential returns than a traditional fixed annuity would offer. American Equity’s IncomeShield, EstateShield and AssetShield series products in this category feature multiple index options and strategies as well as payout choices. They make for an excellent way to turn savings into lifetime income streams by guaranteeing growth while providing protection from index volatility while accruing tax-deferred accumulation – in addition, death benefits will accrue to beneficiaries as an added perk!
What are the benefits of an annuity?
Pensions have all but vanished in today’s economy, leaving annuities as one of the few guaranteed income options to provide contract holders with long-term secure income payments throughout their retirement. Annuities offer either lump sum payments or ongoing life income that’s protected against market fluctuations and provides guaranteed income throughout life.
American Equity offers various annuity types. Immediate annuities are among the easiest options and provide income within 12 months after receiving your lump sum payment. Furthermore, payments may span anywhere between five to 25 years.
American Equity offers fixed index annuities as an option, which allow you to benefit from an index’s performance with returns linked directly back to its performance. While in accumulation phase you don’t pay taxes until withdrawals from the annuity.
Withdrawals from an annuity may incur surrender charges that reduce earnings, however beginning in year two you can withdraw up to 10% of its contract value without incurring penalties.
What are the drawbacks of an annuity?
American Equity provides an impressive selection of annuity products, such as fixed index annuities. These annuities combine the security of fixed accounts with potential for higher returns based on market index performance.
EstateShield annuities offer people who want to ensure their retirement income continues even after death a great solution, along with death benefit protection and tax-deferred growth potential.
Notably, withdrawing funds prior to age 59.5 could incur an additional 10% income tax penalty on top of standard taxes.
Annuities should only be used by investors who understand their goals and risk tolerance. For more information, it would be beneficial to speak with a qualified financial professional.
How do annuities work?
An annuity can provide a way to minimize taxes and generate steady streams of income. When buying an annuity, either by making one large lump sum payment or with multiple smaller ones over time payments over time; your money invested can grow at either a fixed or variable rate and even earn tax-deferred interest!
An annuity’s accumulation phase allows investors to diversify their portfolio while guaranteeing an income for life regardless of market performance.
American Equity offers an assortment of annuity products, such as traditional fixed and index annuities as well as single-premium immediate annuities that provide lifetime income streams immediately following investment. Each annuity series allows for targeted customization based on your goals and objectives.
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