Lundervold Financial’s
Annuity Basics Financial Seminar

Lundervold Financial of Oakdale, Minn., explains how annuities work, types of annuities, and what types of
annuities may be appropriate for your stage of life in this financial seminar.

Understanding Annuities and Annuity Basics — Financial Seminar for Retirement Income Planning

Annuities 101: Understanding Annuities

Lundervold Financial of Oakdale, Minn., explains how annuities work, types of annuities, and what types of annuities may be appropriate for your stage of life in this financial seminar.

Annuities can be helpful tools for retirement planning, yet they may be one of the least understood. Annuities are insurance products that  help people avoid outliving their assets by providing a stream of revenue for a set period or life.

Annuities were created and issued by insurance companies. The insurance company pays the beneficiary a set series of payments, decided in advance when the annuity is created.

Sounds simple enough, but then there are numerous types of annuities to provide nearly any coverage an individual may need. Regardless of the type, there are many advantages like:

  • Potential tax* savings opportunities
  • Lifetime income
  • Benefits passable to beneficiaries

Annuities continue to grow in popularity, and often are purchased by people approaching retirement who receive lump sums of money. Most are purchased to provide a guaranteed source of income in retirement.

However, you don’t always need to wait until you have large amounts of disposable income before buying an annuity. They can be paid out over time just like an insurance policy. And like insurance, an annuity has a beneficiary.

The beneficiary of an annuity can be anyone — including you! However, there may be stipulations, depending on your specific situation. For someone in good health expecting to live longer, it could make sense to buy an annuity. For someone in poor health, it can provide the means of ensuring access to better health care like covering the cost of long-term care.

Types of Annuities

Let’s compare deferred and immediate annuities. As the names indicate, immediate annuities begin payout right away. By contrast, deferred annuities begin payments at some point in the future.

Next, an annuity can either be fixed or variable. In a fixed, a predictable interest rate is set at the time of purchase, providing a set payment amount for the duration of the annuity.

While the funds you provide to some annuities are invested, usually in a stock portfolio, variable annuity payments will change with the market. If the stock market is performing well, payments will be higher; if performance is poor, payments will be lower.

Another difference between a fixed and a variable annuity is who can write it. A licensed life insurance agent can write a fixed annuity, but to write a variable, the agent must also Have passed the series 6 and series 63 Securities Exams. This is because variable annuities are more complicated, involve direct stock purchases, and carry more risk.

There is also, the equity indexed annuity. With these, there is a base return or minimum payout, but there is no maximum. This is because the annuity is tied to a stock index like Standard and Poor’s (S&P 500).

Finally, annuities may be written individually or on a group basis.

It is important to note that annuities are insurance products that may be subject to restrictions, surrender charges, holding periods, or early withdrawal fees which vary by carrier. Riders are generally optional and have an additional associated cost.  Annuities are not bank or  FDIC insured.

What to Expect from the Annuity Basics Seminar

The goals of the Lundervold Financial Annuity Basics Seminar is to explain how annuities work, help you understand the types of annuities, and possible annuity otions for your stage of life.

Because annuities are a way to help ensure you have income during retirement, we make sure that financial seminar attendees are provided with clear, concise information. You will get the answers to some of the most common questions related to choosing and funding annuities, such as:

  • How do you evaluate an annuity?
  • Can you lose money in an annuity?
  • What is the best age to consider an annuity?
  • How long will an annuity last?
  • How much do annuities cost?
  • When can you cash out an annuity?
  • What happens to an annuity when you die?

Our annuity presentation is based on our experience in helping clients understand their retirement plans. This annuity seminar is designed specifically for people nearing retirement, but we feel that even those who are starting to plan well in advance will find it most useful.

It is our hope that you will join us for an Annuity Basics Seminar.

Attend an Annuity Basics Seminar

Apr17
CLIENT REFERRAL EVENT (BY INVITATION)
7:00 pm | Minnesota Wild Suite
Apr21
LUNCH & LEARN
11:30 am | TBA
Apr21
WINE & WISDOM
4:30 pm | TBA
Apr22
NEW CLIENT WELCOME EVENT
5:30 pm | 7 Vines Vineyard
Apr24
AFTER HOURS EVENT
2:00 pm | Lundervold Financial

*Lundervold Financial LLC does not provide tax and legal advice. If you do not have a tax advisor or attorney, we can help direct you to licensed and qualified professionals close to our office in Minnesota or near you if you live elsewhere.

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