On this episode of Red Clay on Wall Street, host, Dr. John Colegrove walks you through another financial query that you may be experiencing in your life. Today’s episode is centered around what a fixed annuity is and who it is most appropriate for, and how it compares to other financial vehicles, products, and investments. Dr. John Colegrove provides real life applicable examples for listeners to understand just how fixed annuities can work for their benefit.   In this episode: 0:09  - Welcome! 1:09 - Dr. John Colegrove introduces the episode theme: what is a fixed annuity 1:15 - A fixed annuity is an insurance product that provides investors with principled protection, a fixed rate of interest, and tax-deferred growth. 1:26 - What stage of life are fixed annuities geared toward and why? 1:51 - When should you own a fixed annuity? Though everyone’s situation is unique, there is one circumstance where owning an annuity is ideal 2:00 - Why and who should be maintaining a healthy emergency fund? 2:20 - Fixed annuities may make sense for those who are dissatisfied with some of the limitations of emergency fund accounts 3:09 - Are there any tax advantages to owning a fixed annuity? 4:12 - Fixed annuities have deferred interest as long as the interest remains in the annuity 4:29 - What if you don’t require the money once it matures? 4:33 - When a fixed annuity matures, an investor has three choices: 1) Cash out, 2) Renew, or 3) 1035 Exchange 5:26 - When would be a bad idea to buy a fixed annuity? 6:29 - What happens to my fixed annuity when I die or become disabled? 6:56 - How does a CD (certificate of deposit) compare to a fixed annuity? 8:06 - Dr. John Colegrove advises to seek advice from a trusted financial professional in regards to finding out financial options work for your life situation   Links: Listen to more episodes of Red Clay on Wall Street on Apple Podcasts Find out more about Calder and Colegrove by visiting their website

Red Clay on Wall Street

RCWS 008 - What is a Fixed Annuity?

Trade tensions have interrupted an unusually calm year in U.S. stocks. In May, the S&P 500 Index fell from an April 30 record high as the United States and China failed to reach a trade deal and escalated tariff tensions. The United States also proposed new tariffs on Mexico, further complicating the outlook for trade. The turnaround in trade talks has surprised investors and rattled global financial markets.

RCWS 007 - Market News: Trump, The Tariff Man!

A 401(k) plan is a retirement savings plan that is sponsored by an employer. It has grown quite popular in the United States, with over 100 million participants (Source: U.S. Department of Labor). A 401(k) plan offers significant tax benefits while helping you plan for the future. You contribute to the plan via payroll deduction, which can make it easier for you to save for retirement. One important feature of a 401(k) plan is your ability to make pre-tax contributions to the plan. Pre-tax means that your contributions are deducted from your pay and transferred to the 401(k)plan before federal (and most state) income taxes are calculated. This reduces your current taxable income — you don't pay income taxes on the amount you contribute, or any investment gains on your contributions, until you receive payments from the plan.

RCWS 006 - What is a 401(k) Plan?

The two major types of IRAs are traditional IRAs and Roth IRAs. Your contributions to a traditional IRA may be tax deductible on your federal income tax return. Your contributions to a Roth IRA are not tax deductible. You can invest only after-tax dollars in a Roth IRA. The good news is that if you meet certain conditions, your withdrawals from a Roth IRA will be completely income tax free, including both contributions and investment earnings.

RCWS 005 - What's the difference between Roth and Traditional IRAs

The two basic types of life insurance are term life and permanent (cash value) life. Term policies provide life insurance protection for a specific period of time. Permanent insurance policies provide protection for your entire life, provided you pay the premium to keep the policy in force.

RCWS 004 - Life Insurance Basics

In this month’s Podcast, I’ll discuss some of the major headlines that influenced markets in August. I will also provide insight into what these developments could mean for you as an investor.

RCWS 003 - Sept 2018 Update

In this episode of Red Clay on Wall Street, we learn about the power of compounding interest through a math presentation made by John Colegrove to a 6th grade class at Wesleyan School. The concept of compounding interest is easily explained through the Rule of 72. Learn about the "dark" and "light" side of the Rule of 72.

RCWS 002 - Are You Smarter Than a 6th Grader?

In this initial episode of Red Clay on Wall Street, we meet Martha. She is a senior investor who seeks more income from her investment portfolio. However, she also has a low tolerance for investment risk. Listen to the episode to see how we address her concern.

RCWS 001 - Martha's Investment Income

Welcome to our show, Red Clay on Wall Street, with our host, CERTIFIED FINANCIAL PLANNER™, Dr. John Colegrove. Red Clay on Wall Street is designed to provide a hometown view of stories and topics that may affect the financial lives of our investors both young and old. Listeners will hear real stories about clients and glean educational content to help you better prepare for retirement.

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Red Clay on Wall Street

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