Annuities

Annuities

 

An Annuity is a fixed lump sum of cash paid to someone each year typically for the rest of their life.  They are a form of investment entitling the investor to a series of annual sums paid out monthly, quarterly, or annually.

With longer life expectancies, fewer pension plans, doubts about Social Security and market volatility, it is harder than ever to feel secure about your retirement income.  That is why people are turning to Annuities.

Annuities are contracts with an insurance company to help you save money for retirement on a tax deferred basis and provide an income stream during retirement guaranteed to last as long as you do.  That income flow can start now or later and also includes options for your loved ones after your death.

There are several types of Annuities depending on your individual needs and situations.

Money you invest in an Annuity grows tax-deferred. When you eventually make withdraws, the amount you contributed to Annuities is not taxed, but earnings are taxed at your regular income tax rate.

You have the option of naming a beneficiary on your Annuity and with certain types of payout options, that beneficiary could receive the money in y our Annuity when you die.  Other options just payout during your lifetime and payments will stop upon your death.