What Is a Private Annuity?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

What Is a Private Annuity?

A private annuity is a contract between two parties in which the annuitant agrees to pay the annuity issuer a fixed sum of money each year. In return, the annuity issuer agrees to make periodic payments back to the annuitant for the rest of their life. This agreement can serve as a retirement savings vehicle or provide income during one’s lifetime.

Key Features of a Private Annuity

  • Issuer: Unlike commercial annuities, private annuities are issued by individuals or private entities, offering more flexibility in terms and conditions.
  • Regulation: These annuities are not subject to the same regulatory oversight as commercial annuities, allowing for more personalized arrangements.
  • Tax Treatment: Private annuities can offer distinct tax advantages, particularly in estate planning, by potentially reducing the taxable estate.
  • Flexibility: They can be customized to fit the specific needs of the annuitant and issuer, with flexible payment schedules and amounts.
  • Risk: Without the backing of large insurance companies, private annuities carry more risk, depending on the issuer’s financial stability.

Types of Private Annuities

  1. Immediate Annuities: Payments from the annuity issuer start as soon as the contract is finalized.
  2. Deferred Annuities: Payments are delayed until a later date, typically when the annuitant retires.

Private annuities can be structured as single-life or joint-life contracts. Single-life contracts make payments only for as long as the annuitant lives, while joint-life contracts make payments for as long as either the annuitant or their spouse is alive.

How to Buy a Private Annuity

  1. Find an Annuity Issuer: Research and find an issuer that best suits your needs.
  2. Provide Personal Information: Information such as age, gender, and health history will be used to calculate your life expectancy and determine payment size.
  3. Decide Investment Amount: Choose between a lump sum or annual contributions. The more money you invest, the higher your payments.
  4. Sign the Contract: Read and understand the terms and conditions before signing. Once signed, your invested money is transferred to the issuer, and payments begin.
Personal Annuity

How We Can Help

At The Annuity Expert, we understand your challenges and uncertainties when planning for retirement or seeking a steady income stream. With 15 years of experience as an insurance agency, annuity broker, and retirement planner, we have the expertise to guide you through this complex process. We are committed to finding the best solutions at the lowest costs.

Your primary concern is securing a stable and reliable income without compromising your financial security. We recognize the symptoms of this problem—stress, uncertainty, and the fear of outliving your savings. We are here to alleviate these concerns by providing tailored solutions that offer peace of mind and financial stability.

Private Annuity

What We Recommend

  1. Initial Consultation
    • Step: Contact us for a free consultation.
    • What Happens: We will discuss your financial goals, current situation, and retirement plans.
    • Main Benefit: Gain a clear understanding of how a private annuity can fit into your retirement strategy.
  2. Personalized Plan Development
    • Step: Allow us to develop a customized plan based on your unique needs and preferences.
    • What Happens: We analyze your information and provide a detailed annuity plan tailored to your requirements.
    • Main Benefit: Receive a plan that maximizes your financial benefits while minimizing costs.
  3. Implementation and Ongoing Support
    • Step: Implement the plan with our guidance and support.
    • What Happens: We assist with the paperwork and contract signing and ensure that payments are set up correctly.
    • Main Benefit: Enjoy peace of mind knowing that your annuity plan is in expert hands and designed for your long-term benefit.

Features and Benefits

  • Expert Guidance: Benefit from our extensive experience and knowledge in annuities and retirement planning.
  • Customized Solutions: Receive a plan tailored to your specific financial situation and goals.
  • Ongoing Support: Enjoy continuous support and advice to ensure your annuity plan remains effective and beneficial.

Addressing Common Objections

  • Risk Concerns: We mitigate risks by thoroughly vetting annuity issuers and customizing plans to suit your risk tolerance.
  • Cost Issues: We ensure that our solutions provide the best value, balancing cost and benefit to meet your financial needs.
  • Complexity: Our clear and straightforward guidance simplifies the process, making it easy to understand and manage.

Choosing not to work with us could mean missing out on expert advice, tailored solutions, and the peace of mind that comes from a well-managed annuity plan. Working with us means securing a stable financial future, reducing stress, and achieving your retirement goals with confidence. Experience the internal satisfaction of knowing your financial future is secure.

Contact us today for free advice or a quote, and take the first step toward a secure and worry-free retirement.

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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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