Moody
Insurance
Group
Serving Florida's Insurance Needs Since 1991
Call us today 954-922-8300
Toll Free 1-800-991-1939
Annuities - IRAs - Mutual Funds
Annuities
The secret to feeling good about your retirement is being certain you’ll
have money for as long as you live. An annuity is a tax-deferred tool that
can guarantee you an income even if you live to be 100. It’s a great way
to help fill the gap between what you currently have coming to you—through
pensions, Social Security, savings—and what you’ll actually need to live.
What Is an Annuity? An annuity is a contract between
you and an insurance company. The insurance company invests your money for
you, and, depending on your annuity, you may receive a regular payment based
on the success of the investments. Income on annuities is not taxed until
withdrawn from the contract, making annuities a tool to save for retirement.
An Annuity Might Be Right
for You If You:
• Have maxed out your contributions to
401(k)s and IRAs.
• Like the idea of having your annuity pay
out periodically, like a paycheck, after you’ve retired.
• Have someone in your life you want to assure is taken care
of financially after you are gone.
• Are comfortable leaving a chunk of your money untouched for
at least 7–10 years.
• Are fairly certain you will not withdraw the money before
you’re 59½.
Types of Annuities The two main types of annuities are fixed
and variable.
Fixed Annuities
A fixed annuity provides a guaranteed interest rate* for a fixed period of
time. Here’s how it works: You give a check to an insurance company, and
they invest it. The interest rate you are paid will be periodically adjusted
up or down, but it will never go below the guaranteed rate. As a result, you
will always receive a guaranteed minimum level of return.
We feature a wide range of fixed annuities.
Variable Annuities A variable annuity is a contract with an insurance company where you
give them either a lump sum or series of payments—and they return your
money, usually after retirement, with a steady stream of payments. In the
meantime, your money is invested and is free to grow, tax deferred, until
you take the money out. Variable annuities provide more options for
investing your money, so potential returns are higher than fixed annuities,
but the risk is also greater.
IRAs
If you’re looking to supplement your retirement
savings, an IRA can be a powerful tool to help you reach those goals.
What Is an IRA?
An IRA is an Individual Retirement Account that allows you to save money for
retirement with certain tax advantages. Think of an IRA not as an investment
product itself but more like a box holding your chosen investments. Those
investments may include mutual funds, stocks, bonds, annuities, Certificates of
Deposits (CDs) or other financial products. Keep in mind that some restrictions
and limitations on eligibility, contribution limits and access to fund apply.
Mutual Funds
Know Your Investment Style
Before you invest your money, you need to know your investment style. This
involves the following steps:
• Determine your time horizon—In how many years will you use your investment?
• Think about your investment objectives—What are your plans for your money in
the next 10 years?
• Assess your risk tolerance—What amount of risk are you comfortable with?
• Identify your model portfolio—Do you seek aggressive or conservative
appreciation—or somewhere in between?
If you’re looking for a way to invest in the stock and bond markets but don’t
have the time or experience to develop and monitor a portfolio of individual
securities, consider mutual funds. Offering diversification, professional
management and flexibility, mutual funds can be a beneficial tool for investing.
What Is a Mutual Fund?
A mutual fund is an investment that combines money from thousands of individual
investors into one large pool. This money is then invested into a broad range of
stocks, bonds or a combination of both. Run by a professional money manager, the
fund is owned by the many individual investors who’ve purchased shares in the
fund. Depending on the types of investments a fund owns, the risk levels can
vary. Mutual funds are very popular investments inside savings vehicles such as
401(k)s, IRAs and 529 College Savings Plans.
We offer a variety of mutual funds through fund families such as:
* AIM Funds
* American Family Funds
* Fidelity Advisor Funds
* Lord Abbett
* OppenheimerFunds
Consider the Benefits
1. Professional management—Mutual fund portfolio mangers are experienced
professionals. They make buy and sell decisions based on the fund objectives and
monitor fund performance so you don’t have to spend your time researching each
stock or bond.
2. Diversification—Most funds give you exposure to dozens or perhaps hundreds of
individual stocks or bonds. If you invest even a small amount in a fund that
owns 500 stocks, you automatically invest in 500 companies.
3. Flexibility—Usually a phone call is all that’s required to redeem your fund
shares or move your money from one fund to another in the same fund family.
Weigh the Facts
1. Returns are not guaranteed—Investing in a mutual fund does not guarantee you
will make money, and you may not see your fund shares rise as sharply or quickly
as individual stocks.
2. Capital gains—The fund manager decides when to sell portfolio holdings and
trigger capital gains, which are a payout of the profits from stocks that have
gained in value. This could mean additional income to report on your taxes.
Also, if you hold a mutual fund for less than one year, you must pay short-term
capital gains on any earnings.
3. Fees—Some mutual funds have associated fees involved with investing.
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Moody
Insurance
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Serving Florida's Insurance Needs Since 1991
Call us today 954-922-8300
Toll Free 1-800-991-1939
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