Whether we like it or not, retirement planning is changing and will continue to change. While Social Security and pensions have been dependable options for retirement income, they are shifting to a point where they will only be available to some. This means it’s very important to prepare now for what will happen in retirement. An immediate annuity is an insurance product that can help people accomplish this goal.
About Immediate Annuities
First, let’s discuss a general definition of annuities. At its base level, an annuity is a financial product that functions as an agreement between an individual and an insurance company. The annuity owner makes a lump sum payment to the company, who agrees to make regular payments back to the owner at a predetermined time. There are two basic types of annuities, deferred and immediate, that determine how and when these payouts occur. Deferred annuity payments start at later date while immediate annuities can start payouts almost immediately.
Immediate annuities are typically selected by those who want steady income payments to start within a short amount of time. The growth of the funds placed within an immediate annuity is tax-deferred, which means you do not need to pay taxes on this increase until the money is withdrawn.
There are many companies out there that market immediate annuities, providing you with a lot of options. By working with Safeguard Investment, you will gain access to many of these companies and have options available to you for immediate annuities. Because of this, we’re better equipped to find an annuity that best fits your needs.
Talk to one of our experienced financial professionals to learn more about immediate annuities. We would love to discuss your financial situation and retirement goals to determine if one of these products would be a good fit for you. Give us a call today and set up your appointment.
Free Retirement Kit
Before you can plan your retirement, you need to know the facts. This helpful Retirement Kit includes three separate guides that address several topics you should consider when planning your retirement:
- Will You Have Enough Income in Retirement?
- 5 Retirement Planning Missteps to Dodge
- Optimizing Your Social Security Benefits
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