This course provides an in-depth examination of annuities and certificates of deposit (CDs), specifically focusing on their roles in retirement planning. Attendees will be able to differentiate traditional fixed annuities and Multi-Year Guaranteed Annuities (MYGAs), as well as simple and compound interest. The benefits and drawbacks of each product will be examined by considering several factors, including minimum investment requirements, term lengths, interest rates, and penalty structures.

Important considerations include the unique aspects of using MYGAs as substitutes for income riders, the tax implications of various financial strategies, and the importance of choosing the right tax type. Additionally, attendees will explore interest rate comparisons, tax implications, penalty structures, and legal protections associated with these financial products. This topic reviews concepts such as 1035 exchanges, the non-qualified "stretch," and the impact of different strategies via banks or insurance companies to provide attendees with a broad overview of retirement planning options.

Learning Objectives:

• Differentiate traditional fixed annuities and MYGAs; compare simple and compound interest


• Evaluate the use of MYGAs as substitutes for income riders


• Identify the taxation implications of the “stretch” strategy and recognize its relevance in retirement planning


• Contrast interest rates offered by insurance companies compared to those offered by banks


• Distinguish between FDIC and state guaranty associations for large deposits


• Summarize the benefits of a 1035 exchange and its relevance to long-term care planning


• Describe the differences between payable-on-death (POD) and beneficiary designations

NASBA Approved

CPAacademy.org (Sponsor Id#: 111889) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

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