By: Derek Knepper - State Farm Insurance Agent  06/16/2015
Keywords: Annuities, Retirement Services, Retirement Savings

An annuity contract is only as good as the insurer's ability to pay. And State Farm has always been able to back up its contract promises. Here's one reason why: A conservative investing strategy – When we invest your premiums, our strategy is geared for the long term. That's why we've invested the vast majority of our bond portfolio in high-quality investment-grade bonds. Rather than being lured by the empty promises of the latest risky investment, we insist on holding the highest grade assets. Types of Annuities: Immediate Annuities – Guarantee yourself an income for life. With an Immediate Annuity, your money provides guaranteed payments to you that begin soon after you make your initial payment. Depending on the tax-qualified or non-tax-qualified status of your annuity, a portion, or the entire payment can be included in your taxable income. The owner can elect to receive guaranteed payments for life, or elect payments to be made over a specified length of time. Deferred Annuities – Increase your retirement savings. The tax-deferral and compounding of interest provided by a fixed interest annuity can help it to grow larger than an equal investment in a taxable account. Gains are taxed as ordinary income once the money is withdrawn. Annuities can also be used to fund traditional IRAs, Roth IRAs and Simplified Employee Pension Plans. (Income tax-deferral is provided by the retirement plan.) *Unisex rating applies to certain tax-qualified plans and policies issued in Montana.

Keywords: Annuities, Deferred Annuities, Retirement Account, Retirement Savings, Retirement Services

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