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How do I use an annuity for retirement income?

Many annuities have lifetime income features that can serve as incredibly useful tools in retirement. Retirees often hope to achieve an ongoing monthly cash flow for the rest of their life, as opposed to having access to a lump sum of savings. An annuity with a lifetime income feature can offer the consistent monthly income some retirees

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Why are annuities considered retirement products?

Montana Life Group firmly believes that annuities are for two things: retirement savings and retirement income. Annuities receive special tax treatment from the IRS as a “tax deferred savings vehicle.” This can be a major advantage for growth potential but there is also a catch. The IRS imposes a 10% penalty on a portion or

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What are the risks in annuities?

The fixed and fixed indexed annuities that Montana Life Group represents do not have direct market risk but there are several other risks to consider. Most importantly the financial strength of the issuing insurance company should be considered. Additionally an annuity purchaser should consider the surrender charges and surrender period (time commitment) required in an

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Can I rollover my 401(k) into an annuity?

Whether you have an old 401(k) from a previous employer or you are trying to fully understand the options that are available to you with your current 401(k) you may want to consider the benefits an annuity can offer. One of the primary purposes people buy annuities is to achieve a guaranteed lifetime cash flow

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Why do people buy annuities?

There are many reasons people buy annuities, but the main intent is to provide retirement income. Money that is positioned into an annuity grows on a tax deferred basis and often can be turned into an income stream that will last for a person’s entire life. Fixed annuities and fixed indexed annuities also offer safety

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What is an annuity?

An annuity is a contract between an insurance company and an individual. The contract can be designed in many different ways to suit the person’s needs. Typically a person contributes a lump sum of money or multiple ongoing contributions of money in exchange for either: (1) a rate of return at a future date or

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What is a hybrid annuity?

The most recent buzz in the annuity marketplace surrounds the use of so-called “hybrid annuities” to obtain safety, reasonable returns, and lifetime income. The term “hybrid annuity” has been made popular by a series of online videos which are designed to give some insight into the features of these insurance products and generate interest in

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What happens if I own an annuity and I die?

It depends on what type of annuity you have. Some types of annuities simply stop paying a monthly income and the contract would cease to exist. Other types of annuities continue paying an income benefit to your spouse. Still other types of annuities pay a lump sum of cash to your named beneficiaries. There are

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The Standard, MetLife, Principal Financial Group, Genworth, & Lincoln Financial Group