Retirees often park money in CDs earning 3% that gets fully taxed and loses to inflation. A split annuity returns most payments as non-taxable principal instead, making more of the income spendable. The strategy helps insurance agents pitch tax-efficient income to conservative savers.
Here's the problem: at least some of your retirement income is derived from money you have in government bonds or bank CDs because you don't want to worry about losing any of your money. But your interest earnings are all taxable and so low they don't even keep pace with inflation. Which means that your safe money retirement funds are actually losing value every year. So how can you keep your money safe and earn higher interest rates without paying taxes on all of your income? With a split annuity. A split annuity is a safe money alternative to bank CDs and government bonds because they are— most of the money you receive from your income contract is a return of your original principal, most of your income is tax-exempt, which leaves you with more money to actually spend every year.
For example, Ann and Ron had $100,000 in a 1-year CD earning 3%.
MONETARY DEVALUATION: PRECIOUS METALS - Insurance Lead Conversion Video | WebPrez
FIXED INDEX ANNUITY DECISION ASSURANCE - Insurance Lead Conversion Video | WebPrez
