Split Annuities

A split annuity is the term given to an effective financial strategy that utilizes two or more different types of annuity products.  There is one annuity designed to generate a monthly income to you and the other annuity to restore the original principal you started with over a given period of time that is usually 5, 10 or 20 years.

A split annuity is a very tax efficient and intelligent investment plan, usually using what is commonly known as a single premium deferred annuity and a single premium immediate annuity. With a split annuity, the immediate annuity repays the owner a set sum of money each month over a specific period of time. The other deferred annuity is left alone to grow on a fixed interest rate basis. The goal usually being that by the time the immediate annuities monthly payments to the owner are depleted, the deferred annuity will be fully restored to the original starting principal. Then you can start the process over again with prevailing interest rates or reevaluate your retirement and investment strategies as they are needed. 

The split annuity can also be used as an exceptional financial asset management tool to ensure that your fixed or regular payments are met automatically. For example, for a fixed mortgage payment, the income portion of the split annuity can easily be credited to an account that is automatically debited for the monthly payment amount. The deferred annuity is also simultaneously rebuilding the principal in the background, set to restore your original amount over a set number of years.

Please contact us for more information on a Split Annuity  866-866-2960