Annuity
Types of Annuity
- Fixed Annuity: Offers a guaranteed fixed rate of return for a specific period.
- Variable Annuity: Offers a variable rate of return, based on the performance of the underlying investments.
- Immediate Annuity: Provides a predetermined and regular income stream that begins shortly after the initial investment.
- Deferred Annuity: Offers a fixed or variable income stream, starting at a future date, often used for retirement planning.
- Indexed Annuity: Offers a guaranteed minimum interest rate along with the potential to earn more based on the performance of a stock market index.
Benefits of Annuity
- Guaranteed Income: Annuities can provide a guaranteed income stream for life or a set period, providing a sense of financial security and stability.
- Tax-Deferred Growth: With certain types of annuities, such as fixed and indexed annuities, earnings grow tax-deferred until withdrawals are made.
- Protection from Market Volatility: Annuities can provide protection from market volatility and financial risks, as they offer a fixed or predictable rate of return.
- No Contribution Limits: Unlike other retirement savings vehicles, annuities do not have contribution limits, allowing individuals to invest as much as they can.
How to choose the Right Annuity Provider
Follow the steps below to help you find a reputable annuity provider.
DETERMINE
YOUR GOALS
LEARN ABOUT
DIFFERENT TYPES
OF ANNUITIES
LOOK INTO
REPUTABLE
PROVIDERS
COMPARE
FEES &
CHARGES
EXAMINE
GUARANTEED
BENEFITS
Examine guaranteed benefits offered, such as minimum income or death benefits, to enhance the security of your investment.
CHECK
CREDIBILITY
REVIEW TERMS
OF CONTRACT
LICENSED
INSURANCE
BROKER
Frequently Asked Questions
Annuities are generally considered a safe investment because they are issued by insurance companies, which are regulated by state insurance departments.
Yes, you can withdraw money from your annuity, but there may be surrender charges and tax implications associated with early withdrawals. It is important to understand the terms and conditions of your annuity contract before making any withdrawals.
Annuities are a good option for individuals who want a guaranteed income stream and protection from market volatility and financial risks. They are often purchased by retirees, but anyone looking for a stable source of income may benefit from an annuity.