An annuity is a relatively low-risk insurance product that pays you money, either for the rest of your life or for a set number of years. They are a popular investment option for anyone who wants to have a steady flow of future income, especially as part of their retirement plans.
Annuities generally earn a higher interest rate than other comparably safe investment options. They also provide tax-deferred growth, so you won’t pay tax on the interest you earn until you withdraw the money.
You can structure your annuity to pay monthly income for a set period or for the rest of your life. No matter how uncertain the economy or stock market may be, an annuity offers a reliable, guaranteed income stream. If you worry about outliving your savings in retirement, an annuity’s stability and security might be the perfect solution for peace of mind, offering a predictable source of funds you can count on no matter what the future holds.
It can help cover essential living expenses, supplement Social Security, or simply provide financial confidence in your later years. With options tailored to your goals and timeline, annuities can be a powerful tool in building a secure retirement plan.
After the 2008–2009 market crash, we saw a strong recovery, but recent volatility is making many investors uneasy. Some have shifted to safer options like CDs, savings accounts, and money markets to avoid losses.
The problem? These options pay less than 1% interest, and that interest is fully taxable.
A better choice may be a tax-deferred annuity from a reputable insurer, offering a guaranteed fixed interest rate up to 3%, helping your money grow safely and faster. Unlike taxable accounts, the growth in an annuity compounds without immediate tax consequences, allowing for greater accumulation over time.
If you’re looking for payments that begin right away and continue for the rest of your life or for a specified period of time (sometimes called a Single Premium Immediate Annuity or SPIA) might be right for you. This type of annuity is purchased with a single, lump sum amount. In return for your one-time premium, the insurance company promises to make regular payments to you (or another person you specify) for a chosen length of time or for the rest of your life.
A fixed deferred annuity (sometimes called a Single Premium Deferred Annuity or SPDA) helps you earn interest safely and allows you to postpone the payment of income taxes on your earnings until you begin taking payments.
Fixed differed annuities may have higher interest rates than competing investments, such as CDs.
An indexed annuity earns interest or provides benefits that are linked to an external reference. The S&P 500 is a commonly used index. The value of any index varies from day to day and is not predictable.
To learn more about this amazing financial product and talk with an experienced professional about which annuity is best for you, call (800) 442-9899.
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