Annuities are insurance contracts that can make regular payments to you either immediately or at some point in the future. Most offer other distribution options as well as guarantees. You can purchase an annuity to help grow or protect your retirement savings or provide you with guaranteed income. Annuity funds usually accumulate tax deferred and generally have guarantees regarding premium paid, interest credited, death benefit and income amounts.
Flexible Premium Deferred Annuity
These annuities are best used if you are still in the accumulation stage, that is you are still putting money away for the future, generally you are making annual or monthly deposits into this type of annuity.
Single Premium Deferred Annuity
This annuity is best when you are not ready to take income distributions and your goal is have your nest egg continue to grow until you are ready to receive income. Basically you make a one time deposit in this annuity and take distributions at a later date.
Single Premium Immediate Annuity
This annuity is when you are ready to start receiving a guaranteed income. Generally, you make a one time deposit and the insurance company gives you a guaranteed income, which can be for a set period, life, or even the life of a spouse or beneficiary.
How will my money grow?
Usually annuities offer multiple crediting strategies. The strategy or strategies you choose determine how much interest you earn, if any. Click here to learn more about index crediting strategies.
Annuity contract can come with a number of guarantees built in. These include an annual fixed rate of interest that is declared each year, minimum guaranteed interest rates, and a minimum value.
To find out whether an annuity is right for you click here to contact me or call me at (458) 205-8398.