Retirement planning has changed dramatically over the years and will continue to do so. It’s quite difficult to rely on Social Security when its future is uncertain. Because of this, it’s important that people prepare now for their future. For many, an immediate annuity is a product that may assist with accomplishing this goal.
What Are Immediate Annuities?
First, let’s discuss a general definition of annuities. An annuity is a financial product that functions as an agreement between an individual and a financial institution. The annuity owner makes a lump sum payment to the company and the company agrees to make regular payments back to the owner at a later time. In respect to when these payments happen, there are two basic types of annuities: deferred and immediate. Deferred annuity payments commence at later time while immediate annuities can start payouts almost immediately.
For those looking for steady income payments within a short amount of time, immediate annuities are a common selection. The growth of the funds placed within an immediate annuity is tax-deferred, which means you aren’t required to pay taxes on this increase until the money is withdrawn.
There are several companies out there that sell immediate annuities, providing you with many different options. To help you make an informed decision on immediate annuities, can provide you with access to products from several different companies. Because of this, we are better equipped to find an annuity that fits your needs.
Want to learn more about immediate annuities? Meet with one of our experienced financial professionals. After a short conversation on your current finances and retirement goals, we will be able to figure out if an immediate annuity is a good choice for you. Call us today and set up your appointment.