Virginia Annuity Resource is part of Maryland Annuity Resource and offers Annuities to all residents living in Virginia. It is important to know about the differences that each Annuity product has to offer and below you will learn some of the differences.
What is an Annuity in Virginia?
An annuity is a long-term savings plan that can be used to accumulate assets on a tax-deferred basis for retirement and/or to convert retirement assets into a stream of income. Issue ages are from 0-80 on most contracts so annuities can be used for many purposes from college savings, wealth protection, retirement planning, ira and 401k rollovers and creating income for life.
While both are insurance contracts, an annuity is the opposite of life insurance:
- Life insurance provides financial protection against the risk of dying prematurely.
- An annuity provides financial protection against the risk of living too long and being without income during retirement or other life event.
There are three basic types of annuities, depending on whether you need to accumulate assets for retirement or whether you’re at or near retirement and interested in creating a lifetime retirement income stream:
- Virginia Deferred Annuities (Virginia Fixed Annuities, Virginia Fixed Indexed Annuities)
- A deferred annuity has two distinct phases: the accumulation phase and the income phase.
- During the accumulation phase, you contribute premiums to the annuity, where they accumulate on a tax deferred basis until needed for income purposes.
- During the income phase, the value of the annuity is converted into income payments.
- Virginia Immediate Income Annuities
- An immediate income annuity is purchased with a single premium and income payments begin immediately or shortly after the premium is paid. Immediate Annuities are used to turn a large sum into a life time income stream like transferring a large pension, or part of it. They also can be used to spread out a tax burden over a long period of time due to a sudden taxable windfall. Most lottery commissions use Income Annuities to pay out winnings over 20-30 years.
- Virginia MYGA Multi Year Guaranteed Annuities
- Multi Year Guaranteed Annuities are similar to Bank CD’s. Insurance companies offer MYGA’s with set guaranteed interest rates for periods of time ranging from 2-10 years. These annuities are ideal for laddering strategies where you know how long deposits are kept and exactly what returns you are receiving. These types are normally non qualified and starting deposits range from $5-10K for initial deposits. Issue ages are also ideal with issue ages from 0-80 years old.
How much do I need to start an Annuity if I live in Virginia?
Most carriers have two types of plans. Qualified and Non Qualified. To start an Annuity, you just need to understand the product, meet suitability and deposit $2k for Qualified plans and $10k for Non-qualified plans. Qualified contracts can come from a partial or full rollover, and Non-qualified needs to be verifiable cash.
We offer all kinds of Annuities for all residents living in the State of Virginia. We look forward to working with you and creating and Income Stream that you cannot outlive.