The Jordan Insurance Agency
The Jordan Insurance Agency is an Independent insurance agency in Charlotte, North Carolina.
Is an annuity or a CD better for safe money?
“A bank CD and a fixed or MYGA annuity differ in backing, taxes and access. CDs at FDIC-insured banks have deposit insurance within the applicable limits and ownership rules; an annuity is not FDIC-insured and depends on its insurer’s financial strength.”
View in the company profileAre annuities FDIC-insured like CDs?
“No. Eligible bank CDs at an FDIC-insured bank have deposit insurance subject to the applicable depositor, institution and ownership-category rules.”
View in the company profileHow are a CD and an annuity taxed differently?
“CD interest in an ordinary taxable account is generally taxed when earned or credited. A non-qualified deferred annuity generally defers tax on earnings until a distribution.”
View in the company profileCan I get my money out of an annuity early like a CD?
“Compare the actual CD withdrawal terms with the annuity’s surrender schedule, permitted withdrawals, renewal provisions and free-look rights. Do not assume every annuity has the same surrender period or annual withdrawal allowance. A withdrawal free of insurer surrender charges may still have tax consequences, and an IRA-held CD has retirement-account distribution rules.”
View in the company profileHow do I judge whether a fixed annuity is safe?
“Review the actual issuing insurer’s financial strength, current ratings and the rating agency’s definitions, as well as the contract guarantees, restrictions and costs. Ratings are opinions and can change; they do not guarantee payment or establish that a product suits you.”
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