There are lots of ways to maintain your lifestyle later on in life. A guaranteed income annuity is one good way to do it. Most people think of an annuity as a pension-like stream of income. When you have one, you basically get a steady "paycheck" for the rest of your life—so you can worry less about managing your money and focus more on living your life.
Everyone has different ideas about what they need when it comes to retirement. That's why talking to a financial professional is a good way to find out what's best for you.
An annuity is a financial contract between an individual and an insurance company in which the individual pays a lump sum or a series of payments to the insurance company. In return, the insurance company agrees to make periodic payments to the individual immediately or at some point in the future. Annuities are used to save for retirement or other long-term financial goals.
There are two main types of annuities: immediate annuities and deferred annuities.
• Immediate annuities: An individual makes a lump sum payment to an insurance company and begins receiving regular payments in return right away. This type of annuity is often used to provide a guaranteed income stream during retirement.
• Deferred annuities: An individual makes a lump sum payment or a series of payments to an insurance company, and the insurance company invests the payments. The individual can then withdraw money from the annuity at a later date, typically during retirement. There are two types of deferred annuities: fixed and variable.
A fixed annuity guarantees a fixed rate of return, while a variable annuity's returns are based on the performance of underlying investment options, such as stocks, bonds, or mutual funds.
Annuities can be a good option for certain individuals, depending on their specific financial goals and needs.
Here are a few examples of people who may benefit from purchasing an annuity:
• Retirees
• People nearing retirement
• People looking for a guaranteed rate of return
• People who have maxed out their other retirement savings options
• People looking to transfer the risk of outliving their savings
Indexed Universal Life products are another option for tax-free retirement. An IUL offers the benefits to grow your money with zero market risk, access your retirement dollars tax-free and leave an income-tax-free inheritance to your family.
If you would like to set up an appointment to discuss your retirement planning and what is right for you click below to schedule a private and complimentary one-on-one consultation.