One of the most frequently used financial products for retirement investing today, annuities have gained quite a bit of recognition over the years. Annuities are exceptional products for many people, and provide you with a steady income for either a set number of years or for the rest of your life. Generally offered by insurance companies, annuities can be paid into for a specified period of time (deferred annuity) or paid in full up front (immediate annuity), and offer tax benefits in most situations. Do you need a reliable income stream for your retirement savings? Have you recently received a large sum of money, either from your 401k/IRA, inheritance, or other payout? Are you worried that you may outlive your retirement income? Click here to receive a quote from a licensed agent and get more information on protecting your future.
Learn more about annuities… 
Annuities at the basic level are relatively simple: an individual gives money to an insurance company, allows it to grow at a certain rate, and then the funds are distributed back to the owner in various ways. When choosing an annuity product, many options are left to the consumer on structuring the investment, including the choice of how you would like to pay into the annuity (immediate or deferred), when you would like to start receiving income (at retirement or immediately), how long you would like to receive the income (set number of years or until death), how you would like the annuity invested (fixed or variable), and how much you would like to receive monthly.
Annuities generally have two phases, the first being the accumulation period where funds are deposited and grow at a specified interest rate, and the annuity phase, where the annuitant (owner) receives payments. The money invested in an annuity gains interest at a certain rate, which can vary significantly between companies. Consumers also have the option to have their interest rate fixed or variable, with a fixed annuity accumulating funds at a specified amount, and a variable annuity influenced by the condition of the economy.
What else do I need to know?
- Annuities can provide a steady flow of income for the rest of your life, taking away the worries of outliving your retirement income
- There are many different ways annuity investments can be structured, so it’s important to speak with a licensed agent and discuss the best options for you
- If you are receiving a large payout, inheritance, or cashing out your 401k/IRA, an annuity can provide you with a fixed monthly income