All Topics > Financial Services > Stages of Annuity Investments >

Stages of Annuity Investments North Carolina

A look at the different stages and life cycle of an annuity investment.

Local Companies

Aon Consulting
(704) 347-4080
101 S Tryon St
Charlotte, NC

Consolidated Pension & Employeebenefits Inc
(704) 846-6283
3133 High Ridge Rd
Charlotte, NC

Anchor Retirement Solutions
704-552-3689
6000 Fairview Road, Suite 1200
Charlotte, NC

American Municipal Securities Inc
(704) 940-8970
2700 Coltsgate Rd
Charlotte, NC

Amwins Brokerage of The Caroli
(704) 365-6101
120 Greenwich Rd
Charlotte, NC

Anchor Retirement Solutions
704-552-3689
6000 Fairview Road, Ste 1200
Charlotte, NC

State Farm - Tracey Winters
(704) 971-1133
10230 Berkeley Place Drive
Charlotte, NC

Fullam Insurance
929-242-5710
Box 430
Horse Shoe, NC

American Securities Group
(704) 644-1366
201 S Tryon St
Charlotte, NC

American Income Life
(919) 571-1865
2841 Plaza Pl
Raleigh, NC

Adapted From: Annuities For Dummies

Technically, every annuity has two phases: accumulation and income. During the accumulation phase, you put money in the annuity account (paying all at once or making a series of payments), and it grows tax-deferred. During retirement, you initiate the income stage by converting it to an irrevocable income stream.

In practice, it usually doesn't work that way. Most people who buy deferred annuities never formally convert them to income; they just take withdrawals during retirement. And a handful of people buy immediate annuities after age 59-1/2 and start receiving income right away.

The purchase stage described below isn't an "official" contract stage. It's added to the beginning of the cycle to articulate the initial steps in acquiring an annuity.

1. The purchase stage (typically starting at age 45 or so):

Meet with a trusted agent/broker/adviser to explain your needs; give her time to research the annuity products available in your state.
Study the various prospectuses or brochures your broker obtains from the wholesaler, broker-dealer, or carrier; choose the best product.
Fill out the contract application; if it's a deferred variable annuity, choose the subaccounts (mutual funds), riders (options), and services you want.
Wait while your application is submitted to the insurance company for approval.
Sign the approved application and provide a check for the purchase premium.

2. The accumulation stage (lasting from purchase until after age 59-1/2):

Manage your subaccounts. If it's a deferred variable annuity, make periodic contributions; if it's a fixed annuity, wait until the term ends and, if you want, roll it into a new contract.
Take withdrawals if necessary, knowing that withdrawals may be subject to a surrender charge, income tax, and a 10-percent federal penalty tax if you are under age 59-1/2.
If you purchased a "guaranteed accumulation benefit," watch to see whether your account value surpasses or falls short of it. If your account balance falls short, you can exercise your option to take the guaranteed amount.

3. The income or distribution stage (starts at age 59-1/2 and lasts indefinitely). Do only one of the following:

Take withdrawals from your contract as needed without converting the assets to a guaranteed irrevocable income stream.
Exercise your guaranteed withdrawal benefit, if you purchased one, to receive a guaranteed income for life while maintaining access to your money.
Convert your annuity assets to a fixed or variable guaranteed income stream for one of the following: life; either of two lives; or a certain period.
Transfer the assets of your deferred fixed or variable annuity to an immediate income annuity and receive guaranteed income for one of the following: life; either of two lives; or a certain period.

provided by:

For Dummies is a registered trademark of Wiley Publishing, Inc. in the United States and other countries. Used here by license.

Featured Local Company

Aon Consulting

(704) 347-4080
101 S Tryon St
Charlotte, NC

Read more about Stages of Annuity Investments

- How To Purchase An Annuity North Carolina

There are basically two types of annuities. A fixed annuity earns a guaranteed interest rate over a specific period of time, while a variable annuity offers a much greater range of investment funding options than fixed annuities.

- Refinancing Real Estate Investments North Carolina
- Substantially Equal Payments Relief North Carolina
- How To Spot Fake High Yield Investments North Carolina
- Annuity Investments for Retirement North Carolina
- Annuity North Carolina
- Reasons Why To Buy Annuities North Carolina
- Short Term Or Long Term Investments North Carolina
- Fixed Deferred Annuity Investments North Carolina
- Equity Index Annuities North Carolina

Regional Articles

- Annuity Investments for Retirement North Carolina

The basics of annuity investments and retirement planning.

- Reasons Why To Buy Annuities North Carolina
- Equity Index Annuities North Carolina
- How To Purchase An Annuity North Carolina
- Fixed Deferred Annuity Investments North Carolina
- How To Spot Fake High Yield Investments North Carolina
- Annuity North Carolina
- Short Term Or Long Term Investments North Carolina
- Refinancing Real Estate Investments North Carolina
- Substantially Equal Payments Relief North Carolina

Advertising	Food & Beverage	Nightlife
Business Services	Franchise	Online Database
Career	Health	Pets
Cars	Holidays	Real Estate Resources
Computer Hardware	Home Appliances	Retail & Consumer Services
Construction	Home Electronics	Software
Education	Home Services	Technology
Entertainment	Industrial Goods & Services	Telecommunications
Environmental	Insurance	Trade Shows
Family	Internet	Travel
Fashion	Legal	Weddings
Financial Services	Miscellaneous	World History

Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History