When you start to think about your options for retirement, you may start to wonder about annuities. You might be wondering what annuities are, how they will be beneficial to you and if they are a good investment for your future and for your retirement.
An annuity is a long-term agreement between an individual and their insurance company. With this agreement, you are protecting yourself from the risk of outliving your income.
When it comes time to start utilizing the annuity, you have several options to choose from. You can choose to receive a lump sum or periodic payments (monthly, quarterly, etc.) that will payout regularly during your retirement.
One of the benefits of annuities is that many companies give you the option to do a penalty-free withdrawal of up to 10% every year once the account has been established for a minimum of 12 months. This means you can have access to your money just in case something happens.
One of the best investments you can make is in your future and annuities can be a great opportunity for those looking to save for retirement. To find out if an annuity is the right choice for you, talk with a financial professional. There are numerous types of annuities to choose from. Here are a few of the most common types.
Multi-Year Guaranteed Annuities (MYGA’s) – this type of annuity has a set fixed interest rate for a certain period of time. Once that time is up, you can do what you please with your money or you can leave it in for another period of time if you are happy with the interest rate that is being offered.
Fixed Indexed Annuity – this type of annuity has a fixed interest rate and grows from external market indexes. This protects your annuity from possible market loss. This annuity provides you with gains when the market is good while protecting you when it is bad. This type of annuity is great for growing income.
Single-Premium Immediate Annuity – this type of annuity can provide a lifetime income or an income for a certain period of time and is often used for clients with a specific need.
At Care Financial, we can help you understand your options and also help you on the path to making the best financial decisions for your future. Give us a call today and start planning for your future with one of our professionally trained and knowledgeable team members.