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Safeguard Your Principal with a Split Annuity
 

To produce maximum income preservation benefits with annuities, a split annuity is a dependable option.  Utilizing two different annuities will provide you immediate income benefits while also having access to your original principal at the end of a defined period.

Immediate annuities provide regular monthly income for a set amount of time that you design to suit your needs.  Income taxes are greatly reduced since a percentage of the income generated from the immediate annuity is considered a return of your original investment.  

Deferred annuities provide a guaranteed return of your original investment at the end of the defined period.  There is also the benefit of tax-deferred growth and an interest rate that is typically higher than most other conservative investment choices. 

The example below illustrates the power of the split annuity approach:

$100,000 Lump Sum Investment

10 Year Period Certain Immediate Annuity

Deferred Annuity @ 5.5%/yr

$41,457

$58,543

 

 

Guaranteed Mo. Income $427.98

Bal at End of Yr. 1 $61,763

 

Bal at End of Yr. 2 $65,160

81% Tax Free

Bal at End of Yr. 3 $68,744

Bal at End of Yr. 4 $72,525

 

Bal at End of Yr. 5 $76,513

Total Pre-Tax Income

Bal at End of Yr. 6 $80,722

$51,357.60

Bal at End of Yr. 7 $85,161

 

Bal at End of Yr. 8 $89,845

 

Bal at End of Yr. 9 $94,787

 

Bal at End of Yr. 10 $100,000

*Please note that this illustration is based on a guaranteed interest rate of 5.50% for 10 years with the deferred annuity. Interest rates will fluctuate and your actual rate could be higher or lower depending on when your money is deposited into the deferred annuity.  Please contact us for current interest rates.

Liquidated earnings are subject to ordinary income tax, may be subject to surrender charges and, if taken prior to age 59 1⁄2, may be subject to a 10% federal income tax penalty.

Guarantees and payment of lifetime income are contingent on the claims paying ability of the issuing insurance company.


 

 
 

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Jerry Brunson Insurance Agency
1726A General George Patton Drive
Brentwood TN 37027
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Important Note: This website provides only a simplified description of coverages and is not a statement of contract. Coverage may not apply in all states. For complete details of coverages, conditions, limits and losses not covered, be sure to read the policy, including all endorsements.

   

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