How much will my financial review and planning cost?
All annuity services are free. Like all annuity consultants, we are compensated by
the carrier. These rates are built into the policy even if you go directly to the insurance company.
Four Peaks Planning, Inc. uses brokerage firms to analyze available annuities. Our advantage is using the input from
multiple firms to offer you the best products available.
Back to Top How do I check the rating of my life insurance or annuity?
We are happy to provide you with the rating of an insurance company. Should you choose to do so on your own,
Either call the insurance company or call these rating agencies to check on the financial stability of
your insurance provider. Some ratings companies charge a fee for this information. Be sure to ask the company for an explanation of
what its ratings mean. Find out how many different rating categories a company has, and what is considered a good rating by the company.
Back to Top What do these ratings mean?
The rating companies above use different criteria. Common criteria includes: profitability, leverage and liquidity tests;
underwriting, control of expenses, adequacy of reserves, soundness of investments, capital sufficiency, earnings performance
and liquidity; all projected over the long term.
Back to Top ANNUITIES What are annuities?
Annuities are tax-deferred savings vehicles offered by insurance companies. Your bank likely offers annuities from
one particular insurance company. Four Peaks Planning, Inc. has access to annuities from all insurance companies.
Annuities are typically contracts for a specific amount of time (from three to fifteen years) allowing you to make
partial withdrawals annually until the contract term ends, at which point you receive the full value.
Back to Top Are there management fees for annuities?
Almost all fixed annuities have no management fees. The cost to maintain your annuity is absorbed by the insurance
company.
Back to Top What are Fixed and Variable Annuities?Fixed annuities offer either a fixed interest rate or interest credited by performance of a market index. These annuities
are contractually guaranteed to never lose money. Index annuities are classified as a fixed annuity. Your money is
never at risk in the stock market.
Variable annuities offer the opportunity for tax-deferred growth if one has fully funded their IRA and/or
401(k) contributions for the year. Variable annuities can be thought of as mutual funds growing with tax-deferred status
with little liquidity.
Back to Top What does annuitizing mean?
Should you choose to annuitize, the insurance company will structure fixed payments to you for either a specific period or
until your passing. We do not recommend annuitizing your annuity unless you are trying to spend down your estate for Medicaid
purposes.
Back to Top What if I need to make a withdrawal from my annuity?
Most annuities allow withdrawals up to 10% per year. Amounts withdrawn over the limit are subject to a penalty. In case of emergencies, such as confinement to a long-term care facility
or becoming unemployed, some annuities will allow you to withdrawal the entire amount without penalty.
While annuities are excellent savings vehicles, we strongly recommend against placing money into annuities that you will need
access to during the length of the contract. Annuities are great long term savings vehicles - they are not short term savings
vehicles.
Back to Top What are the disadvantages of annuities?
Most people find the biggest disadvantage to annuities is illiquidity. A poorly chosen annuity will reflect that sentiment.
However, annuities are great for keeping retirement spending in check. With withdrawal limits typically at 10% per year,
the limits are much higher than the 4%-4.5% spending limit on your retirement savings if you want a 90% chance of not outliving
your assets.
Back to Top INDEX ANNUITIES How is interest credited?
Four Peaks Planning, Inc. helps people choose the right Fixed or Index Annuity. Fixed annuities offer a fixed rate for the year.
Index annuities offer interest based on performance of an index, such as the S&P 500 Index. For example, if the index goes up
10% for the year, you may earn 7% for that year. The following year, if the index has a negative return, you are protected and have
a 0% change for your account that year.
Back to Top Which is better: a monthly or annual cap?
Monthly caps offer higher potential for returns during a year of steady growth with little few index downturns during the year.
Annual caps offer more protection during a volatile year. A popular strategy is to use both an annual cap and a monthly cap by
placing your funds in two separate annuities.
Important :
Please consult with Four Peaks Planning, Inc.
before undertaking any actions. The information in this web site is
provided with the understanding that the publisher is not engaged in
rendering legal, tax or investment advice. While every attempt has
been made to provide current and accurate information, neither the
author nor the publisher can be held accountable for any errors or
omissions. You agree not to hold any employee of Four Peaks
Planning, Inc. liable for action you take from the information on
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