The season of giving is starting early in 2018. Perhaps more specifically, the season of returning.
The Association is proud to announce that many owners of Catholic United Annuities will be seeing an increase in their effective rate.
As of October 8, 2018, the current annual interest rate for annuities will increase to 1.75 percent. That will increase the current crediting rate for the Flexible Premium and the Single Premium Annuities to 1.75 percent from the current guaranteed rate for all annuities is 1.5 percent per year.
Some annuities sold by bad actors have rightly been a smudge on the industry. But for certain things like replacing income and guaranteeing growth, they are the right solution for many. Maybe they’re for you, and maybe not.
Guaranteed Income for Life. Annuities are one of the few investment vehicles where you won’t outlive your income stream. Once you annuitize your contract, you’ll receive periodic payments for life. Some even pay what’s left of your balance or continue payments to your spouse after you’ve died.
Safety. If you’re close to the margins of comfortable retirement (as many of us are), you may not be able to tolerate the risk of losing any of your savings. The benefit of an annuity is that it is a guaranteed contract, period. If you want to know exactly how much you’ll make and know that you’re not going to lose a penny, then an annuity will get you there.
Versatility. Annuities, despite their iron-clad contractual status, can actually be very versatile. With the right planning, they can be used for charitable giving, tax obligation management, gifting and even long-term care preparation (for people who don’t want to buy a long-term care policy – or who can’t qualify for life insurance.) Some annuities can be purchased with a single premium; others allow you to pay monthly premiums into the contract. Once you annuitize the contract, you receive monthly, quarterly, semiannual or annual payments to do with whatever you like. Some can even be set up to pay directly to a charity, or to go to charity after your passing.
There are several reasons why an annuity may not be right for you, too, which require less explanation. Annuities excel at producing a stable stream of income in retirement for the rest of your life. But if through a pension, IRAs and other savings you are comfortable with your expected income, an annuity may not be the right choice. Likewise, because annuities are a contract that locks the money up for a time, if you need fast access to the money, annuities may not be the right vehicle.
Working with an insurance professional, you’ll be able to identify your specific needs and tolerance for risk. If you need to protect what you have, and you’ve got a couple years before you plan to cease working and hang up the spurs, maybe an Annuity is exactly what you need.
Deposits made into a Flexible Premium Annuity on or after October 8, 2018 will earn 1.75% interest per year. Individual annuity account rates will change from 1.50% to 1.75% on the anniversary date of the contract.
(Example – a Flex Annuity was issued on December 1, 2017 at 1.5 percent. On December 1, 2018 the current rate will increase to 1.75 percent.)
Membership in Catholic United Financial starts after you purchase a product from us. Membership means aligning your finances to your faith, and: