Annuity123 is dedicated to providing Americans with unbiased information about retirement, answering the tough questions you want to know.

With hundreds of articles on every retirement planning topic you can think of, peace of mind is just a click away.

Tag Archive: Richard Ericson

How Is My Annuity Taxed?

Richard Ericson

How annuities are taxed can be dependent on the types of funds you use to invest in the annuity. When you invest with qualified funds, withdrawals are taxed as ordinary income. When you invest in an annuity contract with non-qualified funds, withdrawals are taxed as ordinary income until you get to the principal, which has already been taxed. When you use tax-free or Roth investments to fund your annuity contract, withdrawals maintain their tax-free status. Qualified – The first and most common option is utilizing...

View Article

What Happens To My Fixed Annuity When I Die?

Richard Ericson

A little boy runs into his grandpa and says, “Can you make a sound like a frog?”  Grandpa replies, “of course I can make a sound like a frog.  Why do you ask?”  The boy says, “Grandma says when Grandpa croaks we can all go to Hawaii.”  Grandma and Grandpa knew their money was protected and safe in Grandpa’s indexed annuity. There are many common questions that I am asked by investors as they learn about indexed annuities.  “What happens to my fixed annuity when...

View Article

It’s About Time!

Richard Ericson

What TIME is it? How much TIME do you have until you retire? When is the best TIME to retire? One of my rules is, “on TIME or sooner.” My young son has inherited this trait too. I don’t know if that is positive or negative, but it’s about TIME! The simple definition of time:  The regulation of occurrence, pace, or coordination to achieve a desired effect, as in music, the theater, athletics, or mechanics. Think about common references to time regarding your investments. When...

View Article

How to Drive Through Inflation with an Indexed Annuity

Richard Ericson

You know you’re getting old when you are telling your children how much things used to cost. When I was a boy, my father used to moan when gas prices hit $0.30 a gallon. We sold our boat when gas prices skyrocketed to $0.40 a gallon. In 1980, a Porsche 911 cost $32,000. Today, the similar Porsche runs $151,000, which is a 371% increase! At that rate, in another 25 years, that same car will run $600,000. Various driving conditions call for different tools, and...

View Article

Poo Poo to Potential: The Power of Indexing

Richard Ericson

Potential can be such an enticing, positive word. I’ve recruited and coached young men with potential. In my opinion, potential can also be a negative word. The young man that still has potential is not real useful in the game. Potential checks don’t cash very well at the bank. Potential returns are marketed to consumers, and consumers invest for potential all the time. Potential returns, at some point, are not real useful to you. If I could guarantee you an average rate of return of...

View Article

The Alternative to Traditional Long Term Care and Money Market Investment – All In One

Richard Ericson

I listen to you and what you want.  There are two areas that I hear over and over again: Long Term Care and a safe investment that make more than 1%.  Almost all clients I meet with want and understand the need for long term care. However, almost all the clients I meet with do not have long term care.  The number one reason is, “what if I don’t use it”, or “I feel like I’m not getting anything for my premium.”  At the same...

View Article