Dick HOBACK
Specializing in
MORTGAGE AND FINANCIAL SOLUTIONS
Click on the below options to learn more about each specialization
ANNUITIES
What should you know?
An annuity is a contract in which an insurance company makes a series of income payments at regular intervals in return for a premium or premiums you have paid. Annuities are most often bought for future retirement income. Only an annuity can pay an income that can be guaranteed to last as long as you live. There are four primary categories of Annuities explained below.
Fixed Annuity
During the accumulation period of a fixed deferred annuity, your money (less any applicable charges) earns interest at rates set by the insurance company or in a way spelled out in the annuity contract. The company guarantees that it will pay no less than a minimum rate of interest. During the payout period, the amount of each income payment to you is generally set when the payments start and will not change.
Single Premium Immediate Annuity
With an immediate annuity, income payments start no later than one year after you pay the premium. Payments will be made for an agreed upon number of years or for your lifetime or a combination of those options.
Variable Annuity
During the accumulation period of a variable annuity, the insurance company puts your premiums (less any applicable charges) into a separate account. You decide how the company will invest those premiums, depending on how much risk you want to take. You may put your premium into a stock, bond or other account, with no guarantees, or into a fixed account, with a minimum guaranteed interest. During the payout period of a variable annuity, the amount of each income payment to you may be fixed (set at the beginning) or variable (changing with the value of the investments in the separate account).
Fixed Index Annuity
An equity-indexed annuity is a fixed annuity, either immediate or deferred, that earns interest or provides benefits that are linked to an external equity reference or an equity index. The value of the index might be tied to a stock or other equity index. One of the most commonly used indexes is Standard & Poor’s 500 Composite Stock Price Index (the S&P 500)1, which is an equity index. The value of any index varies from day to day and is not predictable. (Note: S&P 500 is a registered trademark of the McGraw-Hill Companies, Inc. ; used with permission.) When you buy an equity-indexed annuity you own an insurance contract. You are not buying shares of any stock or index.
You can also mix and match these four types of Annuities for additional financial solutions such as the Split Annuity below. Contact Dick to create your ideal plan.
