Investment Services  
Annuities  
Financial Planning  
Homeowners and Auto Insurance  
Life Insurance  
Long Term Care Insurance  
Mutual Funds  

  Annuities
What are your long-term financial needs? How much money will you need when your children enter college? How much will you need when it is time for retirement? Whatever you determine your long-term financial goals to be, annuities are one of the vehicles that can help you reach them.

Take the Retirement Issue for Example

The good news about retirement is that Americans are living longer now than ever before.

The bad news is that in order to enjoy those extra years, you'll need more money. Nobody wants to outlive his or her income. And the sources many people have counted on in the past may not be there in the future. The Social Security Administration itself estimates that as Americans live longer, Social Security and company pensions combined might provide less than 50% of the retirement income needed to maintain a comfortable lifestyle.


How Can Annuities Help?

They give current dollars a chance to grow tax-deferred. When you purchase an annuity, the money you earn through the years accumulates without current taxation. There are no taxes on earnings until withdrawals begin.

If you're in a 28% tax bracket, that means 100% of your annuity earnings can go to work for you instead of just 72%. Throughout the life of the annuity, this tax-deferred compounding principle can make a significant difference in your earning potential.


What is an Annuity?

An annuity is a series of payments made at regular intervals. You can buy annuity contracts from life insurance companies. In return for premiums that you pay, the company will pay you an annuity. The main reason to buy an annuity contract is to obtain an income, usually for retirement purposes. An annuity contract is not a life insurance policy or a health insurance policy. It is not a savings account or savings certificate, nor should it be bought for short-term purposes. Annuity contracts may be either immediate or deferred. Immediate annuity contracts provide income payments that start shortly after you pay the premium. Deferred annuity contracts provide income payments that start later, often many years later.


What is a Tax-Deferred Annuity?

A tax-deferred annuity is a product that allows your principal to grow quickly due to the special advantages found in annuities, including:
  • Competitive interest earnings rate guarantees.
  • Minimum earnings guarantees as long as your certificate remains in force.
  • Tax-deferred growth.
  • Guaranteed access.
  • The ability to avoid the inconvenience of probate.


Who Can Use Annuities?
  • Anyone of any age worried about funding his or her retirement.
  • They can work well for younger people who feel that Social Security benefits might not be available for their retirement.
  • They can be extra dollars for senior individuals who want to supplement their retirement dollars.
  • Annuities, with their unique tax-deferred benefits, can even work for people already in retirement.


If you are looking for a tax-advantaged, secure vehicle to take you through the financial maze and also put your retirement savings to work, please call 865-481-4964 or e-mail our Financial Planning Center.


  • These products are NOT insured by NCUA, are NOT deposits, are NOT obligations of, or guaranteed by Y-12 Federal Credit Union and are
    subject to investment risks. Investment risk includes possible loss of the principal amount invested.
  • Securities transactions are executed through Financial Security Services, Inc.
 

Autos 2009-2015 as low as 2.10% APR
60-Month Certificate as high as 1.15% APY
Home Equity-Variable Interest Only as low as 4.00% APR
*Rates subject to change; certain restrictions apply.(1)APR (2)APY
 
Your savings federally insured to at least $250,000
and backed by the full faith and credit of the United States Government National Credit Union Administration, a U.S. Government Agency
Member Cellular Discounts with Sprint

NMLS #441816
Equal Housing Lender
© 2014Y-12 Federal Credit Union, serving Oak Ridge, Knoxville, and surrounding East TN Counties. All Rights Reserved.