Retirement Annuities Explained - Introduction to Annuities

For some people, Retirement Annuities are an excellent option as part of a comprehensive Retirement Plan. In this Intro to Annuities, we'll cover the basics of annuities, we'll cover the different types of annuities and we'll go into some explanation about how they are structured, backed and how they are run by Life Insurance Companies.
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#Annuity #retirementplanning #TroySharpe
Working with a CFP® professional can be an important step toward reaching your financial goals. Not only do these advisors meet rigorous education and experience requirements, but they are also held to some of the highest ethical and professional standards in the industry.
Education
CFP® professionals must master nearly 100 integrated financial planning topics, including:
- Investment planning
- Tax planning
- Retirement planning
- Estate planning
- Insurance planning
- Financial management
In addition to completing a comprehensive financial planning curriculum approved by the CFP Board, or equivalent academic coursework, CFP® professionals are required to complete continuing education coursework, including a CFP Board approved code of ethics course, to ensure their competence in financial planning.
Examination
CFP® candidates must pass a comprehensive 6-hour CFP® Certification Examination that tests their ability to apply financial planning knowledge in an integrated format. The exam is notoriously difficult and only 64% of people who took the exam in 2017 passed. Based on regular research of what planners do, the exam covers:
Establishing and defining the Client-Planner relationship
Gathering information necessary to fulfill the engagement
Analyzing and evaluating the client’s current financial status
Developing recommendations
Communicating recommendations
Implementing recommendations
Monitoring the recommendations
Practicing within professional and regulatory standards
Experience
CFP® professionals must have a minimum of three years experience in the personal financial planning process prior to earning the right to use the CFP® certification marks. As a result, CFP® practitioners possess financial counseling skills in addition to financial planning knowledge.
Ethics
As a final step to certification, CFP® practitioners agree to abide by a strict code of professional conduct, known as CFP Board’s Code of Ethics and Professional Responsibility, that sets forth their ethical responsibilities to the public, clients and employers. CFP Board also performs a background check during this process, and each individual must disclose any investigations or legal proceedings related to their professional or business conduct.
This video discusses fixed income investing and utilizes the 10 year U.S. treasury as a general representative fixed income investment. Conclusions reached, opinions stated, and downside risks and potential returns presented should not be construed as applying to other types of bonds or fixed income assets. Other types of fixed income products carry different levels of risk and return potential and should be evaluated as an element of a diversified portfolio with your specific risk tolerance, investment objectives, and timeline in mind. Nothing in this video is investment advice, an investment recommendation, or an offer to buy or sell any security. Investing involves risk.
Do you need a retirement plan beyond allocating funds to truly fit your needs? We can help you create a retirement life plan customized for your retirement vision and legacy. Call us at [phone] or fill out this form for a free consultation: click2retire.com/annuitiesOHFG

[@kbrabson]

I love this channel! The best retirement DETAILS on KZbin. 😀👍

[@Joseph-fr1rs]

Best video on annuity plans- explained so well in a open, full disclosure fashion. Thanks Troy

[@OakHarvestFinancialGroup]

Hi Joseph! Thanks for watching - so glad you enjoyed it!

[@TheDealHunter]

Thanks for the information about the "statutory accounting system"!

[@pensacola321]

I purchased a Single Premium Immediate Annuity, SPIA from a highly rated company. Used about 20% of my savings. I get a generous monthly payment. With pension and SS a terrific income. No market worries. Absolutely love it.

[@urbanart7325]

my exact plan especially with the rise in interest rate

[@shailendabhi1020]

V p, Can you please provide me with details how to purchase this?

[@jennierdzok9883]

How did you purchase it?

[@shailendabhi1020]

How much interest you are getting 🤔

[@stevemlejnek7073]

Excellent. Eager to follow this series!

[@lorrainep6802]

Very informative video. Thank you.

[@OakHarvestFinancialGroup]

Thank you @Lorraine P!

[@jerryware1970]

Are the death benefits taxable?

[@davemccune5526]

Is income fron an annuity considered tax free?

[@joelcorley3478]

It depends.

[@davemccune5526]

@@joelcorley3478 I was hoping for a little more than "it depends".

[@joelcorley3478]

@@davemccune5526 - I'm not an FA, CFP or tax planner or preparer, but I'm pretty certain that the taxes owed on annuity income depends on how the annuity was funded. If funded from a (pre-tax) qualified retirement plan, all of the annuity payments would be taxable. If funded from a taxable account, only payments in excess of your cost basis are taxable, which means during the earlier years you won't owe any taxes. I haven't looked into this one, but I imagine if you fund from a Roth type account all distributions would be tax-free. I believe the annuity provider is responsible for tracking such cost basis and taxability and reporting it on a 1099-R, so it's not like you have to do this bookkeeping. Any taxable portion reported on your 1099-R is treated as ordinary (pension) income and is taxed at ordinary income tax rates. These are basically tax treatments that make sense. The only special tax treatment is really that taxation on any growth in a deferred annuity is also deferred until you receive payment of the growth. This is unlike the tax treatment of a taxable investment account where dividends and interest are taxed in the year it's earned, but it is sort of like the growth in the value of an equity. However long-term growth in an equity has a superior tax treatment because the gains are taxed using LTCG tax rates / brackets, which is cheaper than the ordinary income rates / brackets that annuity income is taxed. So whether or not the tax treatment is cheaper depends on whether or not you are comparing this against interest earned from say, bonds, or are you comparing this against capital gains from equities. How this impacts your situation will depend on what other taxable income and deductions you might have. If you need specific tax advice and can't find answers on irs.gov, I'd recommend seeking out a tax professional. Hope that helps. I also hope this explains why I said, "It depends." 😉🤷‍♂️

[@philip5899]

There’s no explanation. Just legal and accounting stuff. Typical of annuity sale, never explain the real cost of annuity to customers-their secret get rich scheme 😂

[@dsmith4140]

Annuities- introduction to Bankruptcy 101

[@georgemarsilio5122]

how can I contact you

[@OakHarvestFinancialGroup]

We would love to help! Please click the link here to request a free consultation with our financial advisors: click2retire.com/schedule