Buying a Qualified Annuity

If your employer offers a retirement annuity as part of a qualified retirement savings plan, you can have the premium deducted from your salary in regular amounts during the year—or until you’ve reached the maximum allowable contribution. If your employer matches a percentage of your contribution, be sure you’re taking full advantage of this policy. If the match covers a certain percentage of your contribution—say up to 6% of your salary—it makes sense to put in at least 6%. And if there’s a limit on the dollar amount that your employer will match in any single pay period, you can spread out your contribution over the year so that you qualify for the maximum matching amount. Your employer should tell you what level of contribution to make and over what period of time, to maximize the benefit.

Annuity buyers have options.

Whether you’re in the market for an immediate annuity or deferred annuity as part of your retirement planning; you can take a similar approach in identifying the salesperson you’ll be comfortable working with, selecting the specific annuity contract you’ll buy, and deciding on the investment portfolios into which you want to put your money.

Your choice of annuity contract will depend on where you buy. A direct seller, such as a mutual fund company, may offer only its own products. A brokerage firm or bank, on the other hand, usually has business arrangements with a number of different annuity companies. Typically, you’ll have access to a wide range of features available in different contracts.

At Byrd Financial Group, our financial consultants have access to 54 different companies representing over 400 annuity contracts through our broker/dealer LPL Financial (LPL), member NASD/SIPC.

Registered Representatives
Variable annuities can be sold by registered representatives. The financial consultants of Byrd Financial Group are registered representatives with LPL. There are continuing education requirements that we need to maintain our licenses.

Broker/Dealers
Registered representatives who sell annuity contracts are either affiliated directly with an insurance company or with an independent broker/dealer. At Byrd Financial Group, we prefer to be affiliated with an independent broker/dealer. Because LPL have alliances with a number of different annuity companies, we can provide you access to more annuity contract choices.

Where the Money's Going
In choosing among the portfolios available in variableannuity contracts, according to NAVA, buyers overall allocate slightly more than 54% of their assets to equity portfolios and an additional 8.5% to balanced or asset allocation portfolios, which themselves typically own at least 50% equities. While equity portfolios can be more volatile than fixed accounts, they are able to provide inflation protection and long-term growth potential—primary goals of retirement investment plans.

How to Get Started
If you’re interested in buying an annuity or finding if annuities are right for you, you may want to contact Byrd Financial Group for more details. Or to start, check out our Quick Quiz or Ask A Pro pages.

Remember, nothing has to be done on the spot, so you don’t have to feel pressured to act immediately. The written information you’re provided—for example, the prospectus—should answer the questions you have. If it doesn’t, please don’t hesitate to ask. Byrd Financial Group will be ready—and willing—to answer your questions and provide any annuity advice you need.