Phil Cannella – Phillip Cannella Blog: Phil Cannella, in the course of his research, recognized that a CD offers safety. It certainly does and is even insured up to $250,000 by the FDIC. However, there is more here than meets the eye and Phil Cannella is quick to educate the consumer on some key differences.
For example, as Phil Cannella explains, with a fixed annuity, every year, you can access 10% of the accumulated balance – in other words, the principal plus the gains or the interest added to it – without incurring a penalty. This is another important distinction between CDs and fixed annuities. CDs also require a timeframe in which you are locked into the product, but if you touch any portion of the account, the whole thing breaks and you have to pay the penalty. With the right fixed annuity, you always have some liquidity. Incidentally, if you choose to leave the balance untouched, then the interest will be tax-deferred, meaning you won’t get a 1099-INT in January and have to pay the taxes on what you earn on April 15th.
There are quite a few differences that make the fixed annuity more attractive to people in their retired years and it is important to Phil Cannella that seniors understand this so that they can make better informed choices. When coming through Phil Cannella’s crash proof retirement system he breaks this down in such a way that it all makes crystal clear sense.
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