Split Annuities

Many investors are concerned about being able to balance future investments with current livable income. Likewise, a stock investment that looks for a quick turnaround may make you nervous about long-term implications. But there is an option that allows you to take care of not only your future, but also the present: the split annuity.

What Is a Split Annuity?
Like its name suggests, a split annuity is a combination of a single-premium immediate annuity and a single-premium deferred annuity. You receive the benefits of the immediate annuity in a steady stream of cash that is consistent, safe and guaranteed, regardless of market performance. The structure of a split annuity is also designed to restore your original principal when the immediate annuity reaches the end of its agreed-upon time period. In this way, it is the best of both worlds.

The split annuity is most useful for people who want to be conservative with their nest eggs but also want to supplement their income over time. Many are hesitant to trust their principal to a market that may reward their efforts with diminished returns. The split annuity solves that problem by offering the best of both worlds. It will protect your original investment and offer the potential for growth at the same time.

At AnnuitySearch.com, we believe that as far as earning income in both the long and short term, however, split annuities are a better option than CDs and the like. Since they allow for tax-deferred benefits with solid rates of return in addition to a steady stream of income for a period of time, they are very much worth considering. If you're ready to invest or would like more information, please give us a call.