If you’re 65 or older and considering retirement, it’s important to think about how you’ll afford your lifestyle once you quit working. Annuities are one way to safely store retirement funds and guarantee a fixed income stream for the rest of your life.

Annuities are a contract between you and an insurance company. You pay a set price into the annuity, either in a lump sum or in payments, and promise not to touch it while it builds value on a tax-deferred basis. In return, the company keeps your funds safe and allows you to collect payments for the rest of your life. The amount of the payout, when the payments begin and how often you receive funds can all be customized to the person purchasing the plan. The goal is to provide you with a steady stream of income no matter how long you live past retirement.

While the basic idea behind an annuity is simple, the products can often be confusing.

The two types of annuities we focus on, fixed and indexed, have varying levels of risk and reward.

An annuity is a smart choice for your retirement plan. It can offer tax advantages, customized payouts, protection for your investment and options to transfer funds to your beneficiaries. To better understand the types of annuities and find the right fit you for, give Dee a call today.


Thinking about retirement?

Here are videos discussing the 7 financial risks or “roadblocks” that people face as they approach or are in retirement.