Rollovers
Many people, after having successfully invested in the stock market through their 401(k) plan, are no longer interested in riding the ups and downs of the market - so purchasing an annuity for a lifetime of guaranteed income is an attractive option for them. Escaping the stock market by doing a rollover into a CD just does not provide enough income for most retirees.
You can rollover your 401(k), 403(b), 457, IRA, or lump sum pension payment into an annuity tax-free. An annuity is a "qualified plan," so you are only taxed on the monthly distributions.
Fixed Annuity
I represent top rated companies offering fixed annuities for retirees who are worried about stock market volatility, and want immediate guaranteed monthly income.
Index Annuity
I represent top rated companies offering indexed annuities for those approaching retirement who want an opportunity to participate in stock market growth for a few more years, but want some protection from losses in market downturns.
Bruce Leckey, CPA & Managing Agent
Bruce Leckey Insurance
Florida Agent License No. E148163
Note that I have chosen not to offer variable annuities. Although they may be right for certain people, I just believe them to be overly complex. I need to be confident that my clients fully understand the product they are purchasing to secure their retirement.
My thoughts on retirement annuities...
In a nutshell, annuities are for those who want to enjoy retirement free of the worry about outliving their money. An annuity is a contract you make with an insurance company for guaranteed income.
I have had clients who have become so uncomfortable watching their nest egg shrink from everyday living expenses and market downturns that they stop doing the things that they saved their entire life for.
It is certainly true that annuities are not for everyone. One of the biggest knocks against annuities is that they are “sold” rather than bought. Well, I prefer to explain how the annuities that I offer work. Then, when you decide to enter into an annuity contract, you have had time to think about it and know that the decision you have made is the right one for you - no pressure!
Another complaint about annuities is that the sales representative receives a "high commission" for selling them. This claim is often made by money managers who earn 2% (or more) each and every year that they have your money under management. Even if the agent selling the annuity makes a 4% - 5% commission on the sale, it is only a one-time thing. How much in fees will a money manger earn over your lifetime? Plus, the commission is paid by the insurance company issuing the annuity. It is not paid by the customer directly.