Catalano Insurance Services

Annuities are financial instruments issued by insurance companies. They provide a way to accumulate funds then systematically distribute those funds over a given period.  Annuity buyers deposit money into the contract in the form of premiums either in one lump sum or over a period of time. The insurer, or insurance company, invests the dollars, which are then credited with a certain rate of interest earnings or grow in value in relation to the performance of the investments in which they are deposited. Funds accumulate in an annuity on a tax-deferred basis, which enhances the product’s ability to grow: funds compound at a greater rate because none of the earnings are taxed away.

At a certain point in the contract’s life, the investor will instruct the insurance company to convert all or a portion of the contract’s funds into a series of periodic income payments. These payments are calculated to extend for a certain number of years or for the owner’s lifetime.  By design, annuities can serve as both asset accumulation vehicles and asset distribution vehicles.

When properly used, annuities can be excellent vehicles for retirement. Annuities are complex.  There are as many annuity contracts and designs as there are insurance companies.  So care must be exercised when purchasing an annuity.  Due to the complexity and number of contracts available, I focus on fully understanding your needs.  I look beyond what is suitable for you by asking the question “would this product be the best option for you considering your current situation?”  I endeavor to always do what is in your best interest at all times.

Feel free to talk to me about annuities to see if they are the right vehicle for you.