Annuity Vs. Cd Powerpoint

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Annuity Vs. Cd Powerpoint

  1. 1. ANNUITY CERTIFICATES vs. BANK CERTIFICATES “WHAT YOU ARE GETTING AND WHAT YOU ARE NOT”
  2. 2. WHEN COMPARING A BANK CERTIFICATE WITH AN ANNUITY CERTIFICATE… YOU WILL WANT ANSWERS TO A FEW IMPORTANT QUESTIONS.
  3. 3. 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.
  4. 4. 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!
  5. 5. EXAMPLE BANK CERTIFICATE $100,000 at 6% 35% tax bracket in 10 years grows to $146,607 in 20 years $214,937 ANNUITY CERTIFICATE $100,00 at 6% tax deferred in 10 years grows to $179,085 in 20 years $320,714
  6. 6. 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! EXAMPLE BANK CERTIFICATE $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% ANNUITY CERTIFICATE $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%
  7. 7. 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
  8. 8. FACTS BANK CERTIFICATES CANNOT GIVE YOU TRIPLE COMPOUNDING. INTEREST ON PRINCIPLE INTEREST ON INTEREST INTEREST ON TAX SAVINGS BANK CERTIFICATES INTEREST CAN AFFECT OR REDUCE YOUR SOCIAL SECURITY BENEFITS
  9. 9. FACTS 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.
  10. 10. SAFETY 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 GUARANTY FUNDS”.
  11. 11. 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. EXAMPLE $100,000 Premium $8,000 Interest 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?
  12. 12. ANNUITY CERTIFICATES Are safe and guaranteed by their reserves, billions of assets, by the world’s largest life insurance companies. OTHER ADVANTAGES! 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.
  13. 13. BEFORE YOU SAY YES TO ANNUITY CERTIFICATES 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 •NO EXCUSES
  14. 14. 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
  15. 15. WHICH LOCATION DO YOU WANT YOUR MONEY IN? LOCATION ONE TAXABLE BANK CERTIFICATES LOSE ONE OUT OF EACH THREE YEAR’S INTEREST TO TAXES LOCATION TWO TAX DEFERRED ANNUITY CERTIFICATES YOU DECIDE WHEN YOU PAY TAXES

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