Let's get an annuity
2 reasons for an annuity
tax benefits, security
With Banks, FDIC covers/insure up _______ on a federal level.
250k
Withdrawals are taxed as _______ income
ordinary
Most annuities allow clients to participate in rates of return in a _____________ rate environment with a MYGA and when bonds are low, with the _______market with a FIA, with no risk involved.
high bond, Stock market
Comparable to the FDIC (which is federally backed)with a bank, when it comes to annuities there a state _______ bond that insures a certain amount depending on the state.
Surety
Because growth is ________, you generally do not need to report earnings on your annual tax return until you receive distributions.
tax-deferred
You pay taxes on an annuity when your money is being ________ or received as ________. Allowing the interest to grow tax deferred.
withdrawn, income
More banks go out of business more than insurance companies. TRUE or FALSE
true
Let's say a client has a 7 year MYGA and it's the end of the 7 years, the client can flip to a FIA, therefore transferring the _____ growth into a new annuity, which is a ________ event
taxfree, non taxable
A lot of clients like to put their money in a FIA because the annuity company will give them a guaranteed ______ every month for the rest of their life.
paycheck/income
Annuities are backed by FDIC. TRUE or FALSE
FALSE
If you withdraw funds from your annuity or cancel it before age 59½, you will likely face a ____% early withdrawal penalty and ________ taxes.
10%, ordinary income
If the client/annuity owner passes away, the beneficiary will bypass the lengthy ________ process.
Probate
An annuity/insurance company _______ guarantees a paycheck every month for the rest of their life to the client.
contractually
When you earn ______ in an annuity, you typically don't need to report those earnings and pay income tax on the earnings ________, like you would with a high yield savings account.
interest, every year