Annuities: What Are They Good For?

Your retirement should be more transparent! There's a lot of muddy information out there regarding annuities, and the GenWealth team takes a look at clearing up fact from fiction.Originally aired 11/9/2019Some Clear Disclosures:Fixed and Variable annuities are suitable for long-term investing, such as retirement investing.  Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply.  Variable annuities are subject to market risk and may lose value.Riders are additional guarantee options that are available to an annuity or life insurance contract holder.  While some riders are part of an existing contract, many others may carry additional fees, charges and restrictions, and the policy holder should review their contract carefully before purchasing.  Equity Indexed Annuities (EIAs) are not suitable for all investors.  EIAs permit investors to participate in only a stated percentage of an increase in an index (participation rate) and may impose a maximum annual account value percentage increase.  EIAs typically do not allow for participation in dividends accumulated on the securities represented by the index.  Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes.  Withdrawals prior to 59 ½ may result in an IRS penalty, and surrender charges may apply.