Annuities
Annuities provide a strong choice against retirement risks. They are long term investments designed to help protect you from the risk of outliving your income. Purchase payments are converted into periodic payments that can last for life. They should be considered as a part of the retirement assets of nearly every retiree.
Insurance companies invest your contributions to generate earnings that add to the income contract. Tax-deferred growth helps assets accumulate faster. The insurance company passes the remaining distributions to beneficiaries upon death of the annuitant.
Annuities are categorized in how purchase payments are made, a lump sum or over a period of time, and when the income stream from the annuity begins. Fixed, indexed or variable annuities can be chosen to suit the need for either more safety or the possibility greater returns.
Indexed annuities have an upside potential but no risk to principal. They fit well with the financial objectives of any individual.
Because of tax deferral, money contributed to annuities over ten, twenty or thirty years can outperform CDs, Money Market accounts, treasuries and bonds.
Insurance companies invest your contributions to generate earnings that add to the income contract. Tax-deferred growth helps assets accumulate faster. The insurance company passes the remaining distributions to beneficiaries upon death of the annuitant.
Annuities are categorized in how purchase payments are made, a lump sum or over a period of time, and when the income stream from the annuity begins. Fixed, indexed or variable annuities can be chosen to suit the need for either more safety or the possibility greater returns.
Indexed annuities have an upside potential but no risk to principal. They fit well with the financial objectives of any individual.
Because of tax deferral, money contributed to annuities over ten, twenty or thirty years can outperform CDs, Money Market accounts, treasuries and bonds.
