Annuities ANNUITIESTAs licensed Independent Insurance Agents, rep-advisors at Family Legacy Concepts (FLC) are able to offer Annuities. We work with a number of different companies to utilize the annuity which is best for our client’s individual circumstances. What differentiates annuities, is that they are issued by insurance companies and provide for annual income, at the owner’s choice.BASICSThe insurance firm issuer of these products provide insurance benefits. These features are guaranteed by the insurance company. Many insurance companies provide for the return of net capital invested, at the death of the purchaser. The fee the owner pays for the benefit is called the Mortality and Expense (M&E) charge.Annuities can be compared to IRA’s, as there are rules for penalties in taking money out before age 59 and ½ years. Annuities can be funded with taxable funds, such as a lump sum from an inheritance or sale of property. For investors in certain circumstances, FLC will set up an IRA Variable Annuity. Discuss your current and projected income situation with your tax accountant or attorney before buying an annuity. As with mutual funds, you should read the Prospectus of the annuity before investing.FIXED ANNUITIESAt Family Legacy Concepts we offer Immediate Fixed Annuities, which provide income for lifetime or fixed periods, commencing within a year. FLC also provides Deferred Fixed Annuities that have a fixed rate of interest, typically based on returns on the bonds markets and competing with Certificates of Deposit (CDs) offered by banks.Another type of fixed annuity is an Equity Index Annuity (EIA).CautionsEach client’s situation is unique, so FLC recommends a deliberate approach in considering annuities. The features may suit the client well, and we consider both the explicit insurance costs and the implicit costs of the client’s financial plan. It is an art, not a science, to right-size annuities to clients.As interested, use the Have A Question? section of the Contact page to specify your interest in learning more about Annuity capabilities.