Retirement Income Annuities
Why Invest In An Annuity?
Do you know how much you will need to uphold your current lifestyle in retirement?
Have you considered what could happen if you outlive your retirement savings?
At this point, Social Security faces a questionable future. 401(K) and IRA plans have maximum contribution levels that can limit your savings…
Retirement income annuities may be a solution for you!
What is an Annuity?
Annuities are a form of insurance designed as an investment entitling the investor to a series of periodic sums. They payout a fixed amount of money to the annuitant yearly, quarterly or monthly, typically for the rest of his/her life.
Annuities are designed to help protect you from the risk of outliving your income, by converting your initial contribution into periodic payments that can last for a lifetime. Each annuity is considered a long-term investment issued by an insurance company.
There are different types of annuities for which the premium accumulates interest over the years. This depends on the type of the annuity, whether it is a fixed annuity or a fixed indexed annuity, and the selected timeframe.
The typical purpose of an income annuity is to provide a steady income source during your retirement years. Additionally, an annuity can also be a helpful way to supplement your income in retirement with regular and reliable payments.
Tax deferred annuities are meant to accumulate your savings during your lifetime, for your use during retirement.
Benefits of Annuities
Clients often set up an annuity because it does what no other investment can do – provide guaranteed income for the rest of your life, no matter how long you live.
Annuities have no contribution limits, and can provide more tax sheltered ways to save for retirement if you’ve already maxed out your 401(K) and IRA. This is another reason that annuities are popular as retirement planning strategies.
Since your annuity will provide guaranteed income later on, you may also be able to take a more aggressive investing strategy with your other assets.
- Premiums are typically deposited as a single lump sum. Unlike other types of insurance, you don’t pay on an annuity indefinitely.
- After some time the annuity starts paying you. When this happens, your contract is said to enter the payout phase.
- Annuities can be structured to trigger payments to you or your heirs, for your lifetime.
- After the owner of the annuity dies, the insurance company will distribute any remaining payments to the chosen beneficiaries in a lump sum or stream of payments.
Contact us now to schedule a FREE appointment to discuss your annuity options.
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*By responding to this offer, you may be contacted by an insurance agent regarding the sale of insurance and/or annuity products.