Here at the Gelinas Financial Group, Inc. we specialize in Annuities in Cumming Georgia.

In today’s world, having diversification in your investment portfolio can be a key to achieving financial goals. Putting all of your eggs in one basket has proven to be a faulty plan for many people, certainly as the stock market has gone through some rather volatile swings. For people who want guarantees that the market cannot provide, annuities can fill that need.

Annuities, when in deferral, grow tax-deferred. Interest is taxed as regular income when it is withdrawn. Withdrawal from an annuity before it matures can be assessed a surrender charge.

There are four basic types of annuities, Multi-year Guarantee Annuities (MYGA), Fixed Index Annuities, Variable Annuities, and Single Premium Immediate Annuities (SPIA).

MYGA annuities offer a guaranteed fixed interest rate for a period of time, anywhere from 3 to 10 years. The longer the duration, the higher the interest rate. Pretty simple. Interest can usually be withdrawn without penalty.

Fixed Index Annuities have the opportunity to grow tied to an index (IE the NASDAQ or S&P 500). Growth is subject to a cap that is set annually. Index annuities can perform better than MYGA annuities, but also have the potential to have 0 growth years depending on the market. They typically also offer a fixed rate option. Additionally (and sometime for a fee), index annuities offer income riders to guarantee a lifetime income stream later on down the line. This can give great peace of mind, knowing that a guaranteed income can kick in at some point.

Variable annuities offer tax deferral in an investment portfolio of mutual funds. The value can go up or down depending on market conditions. These annuities also offer income riders, for a fee, which guarantee income for life. You might want a variable annuity if you have a tolerance for risk and also want to ensure a guaranteed income later.

Single Premium Immediate Annuities offer a guaranteed income for life or for a guaranteed set period of time starting usually 30 days after the premium is received.  SPIAs are for people who want predictable income now, and have a money that they can use to create that income stream.

Gelinas Financial Group in Cumming Georgia has extensive experience with all of these categories of annuity and can help to understand which, if any, of these annuities can be a part of your overall strategy.