“WHAT YOU ARE GETTING
AND WHAT YOU ARE NOT”
WHEN COMPARING A BANK
CERTIFICATE WITH AN
YOU WILL WANT ANSWERS TO A
FEW IMPORTANT QUESTIONS.
WHAT IS A BANK CERTIFICATE?
IT’S A LUMP SUM OF MONEY
WITH A BANK.
WHAT IS AN ANNUITY CERTIFICATE?
IT’S A LUMP SUM OF MONEY
WITH AN INSURANCE COMPANY.
QUESTION: How fast will my money grow?
ANSWER: Slower in a BANK CERTIFICATE.
Faster in an ANNUITY CERTIFICATE.
With an Annuity Certificate your interest is tax
deferred. This means you get to keep the money you
would pay Uncle Sam. You earn interest on that money
until you choose to pay taxes on the interest! This gives
you triple compounding of your money, something
Bank Certificates can’t do!
$100,000 at 6% 35% tax bracket
in 10 years grows to $146,607
in 20 years $214,937
$100,00 at 6% tax deferred
in 10 years grows to $179,085
in 20 years $320,714
QUESTION: What if interest rates change?
ANSWER: It does not matter. If rates go up, down or
stay the same in a BANK CERTIFICATE the tax
collector always gets their share FIRST!
$100,000 at 6%
35% tax bracket $6,000 interest/year
Tax Collector gets $2,100
Investor left with $3,900 Actual investment return is 3.9%
$100,00 at 6% tax-deferred $6,000 interest/year
Tax Collector gets $0
Investor left with $6,000 Actual investment return is 6.0%
THERE IS NO COMPARISON!
ANNUITY CERTIFICATES CLEARLY OUT
PERFORM BANK CERTIFICATES
IN EVERY CATEGORY!
READ THE FACTS FOR YOURSELF!
TAKE CONTROL OF YOUR FINANCIAL FUTURE
CANNOT GIVE YOU TRIPLE COMPOUNDING.
INTEREST ON PRINCIPLE
INTEREST ON INTEREST
INTEREST ON TAX SAVINGS
INTEREST CAN AFFECT OR REDUCE YOUR
SOCIAL SECURITY BENEFITS
ANNUITY CERTIFICATES PASS ON TO YOUR
HEIRS PROBATE FREE!
DON’T LET LAWYERS AND THE TAX MAN GET MORE OF
YOUR ESTATE THAN YOUR LOVED ONES!
ANNUITY CERTIFICATES PROVIDE
INCONTESTABILITY AT DEATH!
Unlike a will, no one may contest your decision as to who will
receive your money at the time of your death.
THE INSURANCE COMPANY VS. THE BANK
INSURANCE COMPANIES ARE SAFE AND GUARANTEED
1. REGULATED BY STATE INSURANCE DEPARTMENTS.
2. MINIMUM CAPITAL AND SURPLUS REQUIREMENTS.
3. 100% MINIMUM RESERVE REQUIRED BY LAW.
4. FILING OF ANNUAL STATEMENT.
5. STATUTORY ACCOUNTING.
6. INVESTMENT RESTRICTIONS.
7. GUARANTY FUNDS.
ALL 50 STATES HAVE SOMETHING SIMILAR TO FDIC FOR
ANNUITY CERTIFICATES, THEY ARE CALLED “STATE
THE COST OF FDIC INSURANCE FOR BANK CERTIFICATES
Most people put their savings in BANK CERTIFICATES
because it’s F.D.I.C. insured. Little do they realize the cost
they are paying for this coverage. One out of every three years
interest goes for taxes, plus all the other “catches” the bank
attaches to your BANK CERTIFICATE.
28% Income Tax Bracket
$2,240 Tax paid to government
$22,400 Tax paid to government over 10 years
IS FDIC FOR YOU?
CAN YOU AFFORD IT?
Are safe and guaranteed by their reserves, billions of assets, by
the world’s largest life insurance companies.
1. Non-qualified funds get tax-deferral and can earn much more.
2. There are no “renewable” surrender charges.
3. With a named beneficiary you avoid probate.
4. Free annual withdrawal provisions.
5. Life income guarantees.
6. Annuity interest rates are usually higher than bank rates.
As you can see, when you become familiar with the facts, it makes a
lot of sense to trust an insurance company.
BEFORE YOU SAY YES TO
WE GIVE YOU A WHOLE LIST OF NO’S
• NO LOADS
• NO FEES
• NO SALES CHARGES
• NO MARKET RISK
• NO TAX DURING ACCUMULATION
• NO CHARGE AGAINST SOCIAL SECURITY
• NO LACK OF SAFETY
• NO LACK OF LIQUIDITY
A QUOTE FROM THE
ASSISTANT SECRETARY OF THE U.S. TREASURY
“From the standpoint of the contract holder, a deferred annuity during its accumulation
period does not significantly differ from the long term certificate of deposit (which
incidentally, also may be subject to penalty if it is surrendered prematurely), or any
other portfolio investment which may be reduced to cash at any time. Nevertheless,
interest from other portfolio investments is taxed currently whereas earnings credited to
a deferred annuity are not.
To the extent that annuities can be fashioned to offer interest rates that are competitive
with rates paid by other financial instruments, there is little reason why a potential
investor should purchase anything but a deferred annuity.”
Hon. John E. Chopton
Fmr. Asst. Secretary of the U.S. Treasury
Testimony on Misc. Tax Bills Before Senate Finance Committee
WHICH LOCATION DO YOU WANT YOUR MONEY IN?
TAXABLE BANK CERTIFICATES
LOSE ONE OUT OF EACH THREE
YEAR’S INTEREST TO TAXES
TAX DEFERRED ANNUITY CERTIFICATES
YOU DECIDE WHEN YOU PAY TAXES