Annuities

Arizona Financial Services wants you to make an informed decision when you consider the purchase of an annuity.   Annuities are an excellent tool to help you plan for your financial security.  Annuities offer a variety of benefits, including tax-deferred growth, ability to avoid probate and lifetime income.


Tax-Deferred Growth
     Tax-deferred growth allows you money to grow faster because you earn

interest on dollars that would otherwise be paid as taxes.  Your principal earns

interest, the interest compounds with the contract, and the money you would

have paid in taxes earns interest.  The chart to the right shows the impact of a

tax-deferred annuity.

May Avoid Probate
     Annuities offer the ability to name a beneficiary, which may minimize the expense, delays, and publicity that comes with probate.  Your named beneficiary may receive death proceeds as either a lump sum or monthly income.

Lifetime Income
     Annuities can provide you with a guaranteed income stream with the purchase of a tax-deferred annuity.  You have the ability to choose from several different income options, including life or a specific period. With non-qualified plans, a portion of each income payment represents a return of premium that is not taxable, reducing your tax liabilities.

Types of Annuities
     Arizona Financial Services understands that, depending on your individual situation, you need the ability to choose whatever type of annuity fits you best.  With Arizona Financial Services, you have the ability to choose:

Traditional Fixed Annuity – offers a declared fixed interest rate that is guaranteed for a specific period and guaranteed to never go below a specific percentage.

Fixed Index Annuity – interest rate credited to you annuity contract is linked to specific market indices that you can choose on an annual basis.  Once the interest is credited, you are guaranteed that it can never go down based on future market fluctuations.

Immediate Annuity – you are guaranteed an income stream ranging from a specific period of time to you entire life.  An immediate annuity offers a solution to the problem of outliving your money.

Variable Annuity – very similar to Index Annuities, however, their earnings are based on the earning of sub-accounts (similar to mutual funds) that can lose money based on the positive or negative earnings of the sub-accounts.  There is more investment risk in variable annuities but there is also a potential for higher gains

 
Different Kinds of Annuities:

  • I.R.A. – Individual Retirement Accounts
  • Roth I.R.A.
  • S.E.P  – Simplified Employee Plans
  • 401-K – Group Retirement Plans
  • 529 – Education Plans


1.  The chart is a hypothetical example of tax-deferral and assumes an initial premium of $100,000 earning 4.00% compounded annual rate of return for 15 years.Not intended to predict or project performance


* Tax-deferred value less taxes represents the increase in value, due to tax-deferral less taxes at an assumed rate of 33% with no surrender charge or interest adjustment applied