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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

January/February 2023

What You Should Know About Annuities

Magnifying glass with text ANNUITY on wooden table and green background.

Retirees who are concerned that their savings and investments won’t be enough to sustain them throughout retirement may want to consider purchasing an annuity. Annuities can provide a stream of income for as long as you live or for a specified number of years. When it comes to the timing of purchasing an annuity, you essentially have two options: immediate or deferred.


1. Immediate Annuity
This is the simplest type of annuity. You make a single lump sum payment to an insurance company. In return, you receive a fixed stream of income for your lifetime or a fixed period. Payments start soon after you purchase the annuity, usually within a year.


2. Deferred Annuity
You make premium payments over time, then take income sometime in the future, allowing your money to potentially grow.


More Choices
Annuities differ further, depending on the type of annuity and the options offered. Variations exist within each of these two categories, but below are the broad definitions.


Fixed Annuities
Fixed annuities offer a guaranteed rate of return on contributions and guaranteed income later. A fixed annuity may be appropriate for someone interested in low risk. However, their lack of inflation protection may be a disadvantage.


Variable Annuities
A variable annuity is an investment account that grows tax deferred and offers a range of investment options (called subaccounts). The value of the account depends on the performance of the type of investments you choose. As with any investment, variable annuities involve risk and are not appropriate for short-term goals.


Indexed Annuity
An indexed annuity typically promises to provide returns linked to the performance of a market index. Indexed annuities are complex products, and you can lose money if the market index declines.


It’s important that you consult your financial professional because of the multitude of conditions, requirements, fees, and suitability.


*Annuity products are not FDIC-insured, and their guarantees are backed solely by the claims-paying ability of their issuing life insurance company. Distributions from annuities are taxed as ordinary income and, if taken prior to reaching age 59 1/2, may be subject to an additional 10% IRS tax penalty.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

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