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May 28, 2018

How do Annuities work?

Retirement is no longer as certain as it once was: pensions and 401(k) plans aren’t offered by all employers, and when they are, they come with heavy taxes and can be at risk in the market. People are also living longer due to advances in medicine, so outliving financial resources is a real concern for most Americans.

An annuity can be a great solution to these problems because it is a secure investment that can guarantee income for your retirement.

If you don’t want to risk losing part of your retirement savings in equity based products with the risk of market losses, an annuity is a great alternative. Fixed and Index annuities offer protection for your Money as well as the gain you receive each year. Your money is never at risk due to market losses because there are minimum guarantees in the contract that protect you.

As you know, the United States population is aging and people are living longer. More than 8,000 people turn 65 every day and more people are living into their 80s and 90s. It’s a realistic concern that you’ll outlive the money you have saved for retirement. Many of the annuity products that we offer come with a guaranteed retirement income that cannot be outlived, no matter how long you live or how much retirement savings you have accumulated!

Annuities are tax deferred, meaning the money will accumulate without you having to pay tax on the gain until the money is withdrawn in the future. Tax deferral can be a huge benefit. For example, if you have $100,000 & it grows at 7% each year before taxes, assuming you’re in a 25% tax bracket, in 25 years you would have $542,743 saved in a tax-deferred vehicle ($407,057 after taxes on the gain) versus only $359,379 in a taxable savings account.

Annuities also avoid the costs & delays of probate, giving your loved ones access to the funds quickly when you pass away, if you haven’t used all of the cash value during retirement.

Why is an Annuity so important?

Retirement planning can be a bumpy road. Without the right investment vehicle, you may outlive your savings or suffer a lower quality of life to make ends meet. The government doesn’t make it easy, either. Taxes, Medicaid, estate planning, and a variety of other factors add to the uncertainty, putting your financial security in question.

Retirement is your opportunity to live your dreams. Don’t spend it on a modest income or, even worse, burdening your family financially. With an annuity, you can have a guaranteed income for the rest of your life, so you can enjoy your golden years without worrying about money.

Let us help you enjoy a stress free retirement so you can be free to do whatever you want.

If you’re planning for retirement, you can obtain a free annuity quote by filling out the form on this page. Our team of trained annuity specialists will work with you to develop a plan that fits your budget and income needs.

Retirement planning doesn’t have to be a hassle. With a variety of providers and options available through National Agents Alliance, your annuity can be customized to meet your retirement income goals without exceeding your budget. Check out the list below to learn more about the benefits of annuities.

Annuity Services

  • Guaranteed Income. Your annuity can be structured to pay a lump sum, monthly payments for a fixed period of years, or even for the rest of your life, giving you income that you can’t outlive.
  • Competitive Interest. Most annuities have an interest rate equal to or greater than Certificates of Deposit (CDs).
  • Zero Risk. You gain interest when the market is up, but won’t lose any money when the market is down.
  • Tax-Deferral. Contributions to your annuity are not taxed until you withdraw funds.
  • Medicaid Qualification. Your annuity can be structured to shelter assets, allowing you to qualify for Medicaid more easily without sacrificing quality of life.
  • Avoid Probate. By naming a beneficiary, your annuity money will bypass the lengthy and potentially expensive probate process when you pass away.

If you’d like to learn more about annuities, fill out the form on this page or call our team for a free consultation today (786) 307-6155

 

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