CD Fixed Annuity
Out of all the annuities sold today…this is the best annuity product sold. It could be the best financial product available for the general public. It’s simple and clean. You can think of it like a tax deferred CD. It has a guaranteed yield for a fixed term. If you’re going to buy an annuity…this is the product to buy. When you read about annuities, do not assume they’re all the same. There are CD fixed annuities, variable annuities (a security - which can lose money), equity index annuities (which has its problems), and the bonus annuity (which gives a high yield in the first year, and then yield drops in the second year). So, why haven’t I heard of the CD fixed annuity? Simply because the CD fixed annuity pays a low commission.
Do not annuitize the product. Annuitizing the product freezes in yield and the product is basically turned into an immediate annuity (producing a small internal yield) to be liquidated to zero over a specific time period (which is irrevocable). Liquidate this product based on withdrawal only. By liquidating based on withdrawal only, the internal rate of return remains constant without any provisions of irrevocability. You can liquidate up to 10% per year free of surrender charges (in the surrender period), and you can exceed a 10% withdrawal after the surrender period as expired (usually it takes 5 to 8 years for the surrender period to expire).
These products are great for people who are conservative who do not want to lose money, and want to grow their money tax deferred.
Sincerely,
John Bagwell
The Truth About Financial Products.com
www.thetruthaboutfinancialproducts.com
