How Annuity Units Work

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding Annuity Units

Annuity units are crucial components of variable annuities that you purchase with payments into the annuity contract. Unlike owning a piece of a company with a stock, owning an annuity unit means having a proportional share in a sub-account of the annuity. The value of these units depends on the performance of the sub-account, making them a unique investment option tailored to your retirement needs.

How Annuity Units Work

Each annuity unit holds a value that fluctuates based on the associated investment portfolio’s performance. During the accumulation phase, the number of annuity units you own increases with each payment you make. However, the value of each unit may rise or fall depending on market performance. This dynamic nature means your investment’s growth potential is tied to market conditions, offering both opportunities and risks.

The Importance of Annuity Units in Retirement Planning

Annuity units are essential for generating a steady income stream during retirement. The value of your annuity units during the accumulation phase significantly impacts your retirement income. Your contributions (or annuity unit purchases) are like seeds, and their growth (market performance) determines your retirement income. This makes understanding annuity units vital to securing a financially comfortable future.

Annuity Units

How We Can Help

At The Annuity Expert, we recognize that planning for retirement can be overwhelming. You’ve worked hard, and now you deserve a secure and enjoyable retirement. For 15 years, we’ve been dedicated to finding the best solutions at the lowest costs. We believe in helping you navigate the complexities of annuity units and other retirement planning tools to achieve your financial goals.

Your core problem is ensuring a reliable income during retirement without falling prey to market volatility. The symptoms of this problem include anxiety about market fluctuations, confusion over investment options, and fear of insufficient funds during retirement. We understand these emotional challenges and are here to offer clear, expert guidance.

Our authority as an insurance agency, annuity broker, and retirement planner is built on years of experience and a commitment to personalized service. We fight against high costs and complicated jargon, ensuring you get the best solution tailored to your needs.

Annuity Units

What We Recommend

Step 1: Initial Consultation

Contact us for a free consultation. During this session, we’ll discuss your retirement goals, current financial status, and any concerns you have. The main benefit is gaining clarity on your options and understanding how annuity units can fit into your retirement plan.

Step 2: Personalized Plan Development

Based on your consultation, we’ll develop a personalized retirement plan. This includes selecting the right annuity products, explaining how annuity units work, and outlining potential growth scenarios. The main benefit is having a tailored strategy that aligns with your financial goals and risk tolerance.

Step 3: Implementation and Monitoring

We’ll help you implement the plan and continuously monitor its performance. Regular reviews ensure your plan adapts to market changes and your evolving needs. The main benefit is peace of mind, knowing your retirement plan is actively managed for optimal results.

Features and Benefits

  • Personalized Advice: Tailored financial solutions mean your plan fits your unique needs.
  • Expertise: Our 15 years of experience ensure you receive knowledgeable and trustworthy guidance.
  • Ongoing Support: Regular reviews and updates keep your retirement plan on track.
  • Cost Efficiency: We focus on finding the best solutions at the lowest costs, maximizing your investment.

Common Objections and Rebuttals

  • High Fees: We offer cost-effective solutions, ensuring you get the most value for your money.
  • Market Risk: Our personalized plans are designed to mitigate risks while maximizing growth potential.
  • Complexity: We simplify the process, making it easy to understand and manage your investments.

Consequences of Not Working with Us

Without our guidance, you risk choosing suboptimal investment options, paying higher fees, and missing out on opportunities to maximize your retirement income. By working with us, you’ll experience confidence, security, and the joy of knowing your retirement is well-planned and secure.

Contact us today for free advice or a quote. Let us help you achieve the retirement you deserve.

Annuity Units Explained

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Frequently Asked Questions

What is an annuity unit?

An annuity unit refers to a measurement used to determine an individual’s share in an annuity investment fund. It represents the value of the investment at a specific point in time. The number of annuity units owned by an individual is directly proportional to their investment amount, and the value of each unit fluctuates based on market conditions.

What are the benefits of investing in an annuity unit?

The main benefit of investing in an annuity unit is that it can provide a steady income stream during retirement. Another benefit is that some funds could pass on estate-tax free depending on how you structure the annuity and any additional riders you purchase. Also, an annuity unit can offer protection from market volatility and the potential for growth over time.

Are there any fees associated with investing in an annuity unit?

There may be associated fees depending on your annuity contract. These could include administrative fees, mortality risk charges, surrender charges, and investment management fees. It is important to review the terms of your annuity contract and understand all associated fees before investing.

How do I know when it is time to start redeeming my annuity units?

Generally speaking, you can begin receiving income payments from a variable annuity once you reach age 59 1/2. However, it is important to speak with a financial advisor to determine the best time for you to start redeeming your annuity units based on your situation.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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