What is an annuity?
Annuities are retirement products that can help provide a steady, guaranteed stream of income in retirement.
You can contribute to an annuity as part of your retirement strategy alongside any contributions you make to a 401k, IRA, or pension.
An annuity could pay you for your entire life – even if you live to 120 – for your spouse’s entire life, or for a set period of time that you select, depending upon the type of annuity.
Learn more about our annuities.
Why buy an annuity?
Simplified: An annuity can help you protect and grow your retirement savings.
It does what no other investment can do: provide guaranteed income for the rest of your life no matter how long you live.
Know the difference: Life insurance is designed to provide benefits to your loved ones after you die, while annuities are designed to provide a benefit while you are still living.
Here are some reasons why an annuity may be a beneficial part of your financial plan.
Annuities Can Provide Guaranteed, Predictable Income
These days, people are living longer. This means your retirement could last 20 to 30 years, or longer. Meaning your money needs to last longer.
Traditional retirement strategies may not be enough. So even though you’ve diligently saved for retirement, and Social Security benefits are available to you, you may want to consider another source of income you can count on like an annuity.
You Can Choose When to Begin Receiving Income
With annuities, you can decide when you want to begin receiving income, and most don’t even make you decide in advance. The bottom line is that whether you need income today or sometime in the future – you can determine what’s best for you.
Annuities Can Provide Stability for Your Overall Investment Portfolio
With most fixed annuities, you can count on getting out what you put in – sometimes even more. That kind of predictability helps balance your other investments that may be more sensitive to market swings. No matter how the stock and bond markets perform, you’ll typically receive at least a minimum return from a fixed annuity in your portfolio.
Annuities Can Make Your Investment Portfolio More Tax-Efficient
Many investments require you to pay taxes each year on what you earn, so, you’re not really earning as much annually as you might think. However, with deferred annuities, you’ll only be taxed on the growth when you take out money in the future.
Did You Know: Having an additional tax-deferred investment in your portfolio means you can help minimize the taxes you pay each year.
You Can Customize Annuities Based on Your Financial Goals and Needs
Annuities are not one-size-fits-all.
There are a variety of options to consider – ranging from products that focus on growth potential to products that offer steady, guaranteed future income. Work with a financial professional to find out if there’s an annuity that fits your needs.
Do you need an annuity?
Annuities aren't for everyone. If you aren't worried about running out of income, you may not need an annuity.
If you're healthy and you want the security of a stream of income you can't outlive, or you want to provide for your spouse or heirs, you may benefit from an annuity.
To learn more and see if annuity is right for you, our team is here to help!