Secure Your Financial Future

Annuities Options

Looking for a reliable way to secure your financial future? At Callaway Financial Services, we’re here to guide you through the variety of annuity options available, helping you understand how they fit into your overall financial planning. From the security of Fixed Annuities to the growth-oriented Variable Annuities, each type serves a different financial need. Let us assist you in finding the annuity that best supports your financial goals, ensuring a more secure financial future.
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    What is an Annuity?

    An annuity is simply a series of periodic payments. It is a contract guaranteed by an insurance company that promises to make a series of payments for a fixed period or over someone’s lifetime. A premium paid either in a lump sum, flexible, or periodic payment schedule is paid to the insurance company in advance.

    Why Would I Want to Buy an Annuity?

    For those who are risk-averse and want their money guaranteed, an insurance company can provide a fixed annuity that pays a fixed interest rate, much like a Certificate of Deposit (CD).

    Annuities offer retirees the same consistency and security as a pension or Social Security payment, providing a steady, guaranteed income stream.
    Annuities provide tax-deferred accumulation for a fixed annuity and tax-sheltered growth for a variable annuity. They also provide tax-sheltered income. And in the case of variable annuities, tax-sheltered growth. These investments are also protected from creditors. The insurance industry also has a tremendous lobby to protect these types of contracts from legislative change.

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    Benefits of Annuities

    Annuities offer a range of advantages, making them a valuable component in financial planning. Here are key benefits that they can provide:
    Annuities are a versatile and practical solution for many looking to secure their financial future, offering protection and growth potential.

    Exploring Different Types of Annuities

    Callaway Financial Services specializes in several types of annuities, each designed to cater to different financial planning needs. Understanding the nuances of each can help you make an informed decision about which is best suited for your financial goals. While there are various types of annuities available, we focus on the following:
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    Each annuity plays a unique role in financial planning, offering different levels of risk and return. At Callaway Financial Services, we assist you in exploring these options, ensuring they fit seamlessly with your financial strategy for a secure and comfortable future.

    More About Annuities

    First, insurance companies reinsure each other to diversify the risk further. Second, the state where the insurance company is domiciled steps in and transfers all existing contracts to another insurance company to continue the benefits and guarantees. But there is a limit. There is not an FDIC like in the banking industry. The state will have a limit of approximately $300,000 of cash value that will be covered in the event the insurance company has zero assets or reserves left. This will vary from state to state and is not a hard amount.
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    A fixed annuity pays a fixed interest rate based on the underlying bond portfolio owned by the insurance company.

    For customers willing to take on more risk, a variable annuity has sub-accounts that invest directly in the stock market and the bond market. The subaccounts are much like a mutual fund, but we are not allowed to call the subaccounts a mutual fund.

    When you buy an annuity, the agent is paid a commission. There are also expenses incurred by the insurance company when establishing the contract. To keep the underlying bond portfolio from being disturbed (selling bonds to provide cash for early surrender), insurance companies set a surrender charge to cover these expenses in the contract. If you intend to buy an annuity, you must be prepared to hold it for a very long time.

    A Smart Approach to Financial Planning

    Choosing Callaway Financial Services for your annuity needs means partnering with a team that deeply values integrity, honesty, and a personalized approach to wealth management. Our decades of experience in financial services uniquely position us to guide you in creating a financial plan. Unlike other firms, we don’t just focus on the features of annuities; we integrate them into a comprehensive financial strategy that aligns with your overall goals.

    Why Choose Us?

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