Annuity & Certificate of Deposits
What Is Annuity & CDs (Certificate of Deposits)?
Annuities often secure steady cash flow to you during your retirement years through growing invested funds. The payout process is known as annuitization.
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Ask yourself, “What am I insuring?”
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Answer: your longevity, specifically maintaining a flow of cash during it.
If you’re near retirement, or planning to retire soon, you have most likely heard that annuities can be a way to create a life-long income stream, protect your principal, provide a death benefit (legacy) to your beneficiaries, or simply defer year-end taxes. In today’s investment and retirement planning world, there are a lot of misconceptions regarding the various annuities available in the marketplace; many with differing benefits, features, and potential guarantees. Following is a list of the various types of annuities:
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Fixed
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Index
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Variable
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Immediate
Contact us to discuss if an annuity plan makes sense for you.
What Exactly is a CD (Certificate of Deposits)?
A certificate of deposit is an option to grow your savings in which “you choose the set period of time to earn a guaranteed fixed interest rate, regardless of market conditions.” In other words, you deposit a certain amount of funds in a bank, agree to a term length, and then accept a specific interest rate, which the institution will pay back on top of your initial investment at the maturity date (when the term ends). As you can see, it’s a very similar situation to taking out a loan from a borrower, except CDs position you as the lender
Thomas Financial will assist you to the goal of investing money is to place funds somewhere they will grow passively, after which you amass financial gains. While this isn’t necessarily the result of all investments, and some can certainly depreciate in value, CDs offer an almost guaranteed return. This investment type is one of the most secure yet profitable—for an ideal balance of returns and peace of mind that every dip in the market isn’t going to hurt your bottom line.
Contact us to learn more about how you can open a Certificate of Deposit account.
*Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss. There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio; it is a method used to help manage portfolio volatility.
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
Annuity & Certificate of Deposit
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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss.