The Tactical Planning Group

Annuities are sometimes used as an investment alternative. They are utilized when individuals want to help protect their retirement accounts and have a predictable source of income. Annuities are a contract between an individual and an insurance company.  The individual’s investment can accumulate tax deferred and be used for a retirement income stream. They can also offer additional options, like Guaranteed Income/ Withdrawal benefits and Enhanced Death benefits. These different types of annuities are used by many investors.


Fixed annuities can help provide you slow, steady growth. They aren’t flashy, but they do offer steady increases. You make a one-time commitment with an insurance company in exchange for the company holding onto your money for a certain amount of time. You receive a fixed interest rate on your money for the period you want (typically these are held 3-10 years). Good for someone looking for a conservative, secure financial vehicle.


These annuities are linked to an outside index (S&P 500, DJIA, Russell) and help provide the potential for growth when the index rises (without direct exposure to it). When the index rises, your annuity value can increase. When the index goes down, you don’t lose money; it just stays the same. Indexed annuities offer a wide range of guarantees and growth potential.


Immediate annuities can be structured to provide a guaranteed regular income stream for the rest of your lifetime, acting somewhat like the regular income from a pension or a bond. You can also choose an option that will continue payments to a surviving spouse in the event of your death. The disadvantage to immediate annuities is that in exchange for a guaranteed income, you give control of your money to the insurance company.


A variable annuity is a long-term investment product, designed for retirement, where all interest, dividends and capital gains accumulate tax-deferred. Liquidated earnings are subject to ordinary income tax and if made prior to age 59 may be subject to a 10% federal income tax penalty. Early surrender charges may also apply. Variable annuities have additional fees and charges such as separate account charges, mortality and expense risk charge and annual maintenance fees. These charges vary by product and will have a significant impact on contract values. Please refer to the prospectus for specific charges applicable to your contract.

Before purchasing a variably annuity product, investors should carefully consider the investment objectives, risks charges and expenses of these products and its underlying investment choices. For this and other information, obtain a product prospectus and underlying fund prospectus, from your financial services representative. Please read it carefully before you invest or send money.

The Tactical Planning Group represents over 50 different life insurance companies. We will help you decide which annuity is best for you, with the most competitive company.