Annuities and Retirement Planning


An annuity is an investment product issued only by an insurance company designed to grow in value and then pay you a stream of guaranteed monthly payments starting at a later date, or a set date, usually corresponding to your retirement.

You should consider an annuity only after you have maxed out other tax-advantaged retirement investment vehicles, such as 401(k) plans and IRAs. If you have additional money to set aside for retirement, an annuity’s tax-free growth may make sense – especially if you are in a high-income or moderate tax bracket today.

Here are the three major reasons why annuities should be a part of your financial game plan:

1. As a safe financial instrument to place your money.
2. Earnings grow tax deferred. You do not pay taxes on the earnings until you withdraw them.
3. Gives you an assurance that your money will be there for as long as you need them.

Annuities, for the past 30 plus years have been greatly enhanced. They are now more competitive and offer better rates of return.

If you want to know more about annuities to incorporate in your retirement planning, just send me a message.

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