What are Annuities?
Annuities are an important part of retirement and investment plans, designed to help your assets grow and provide a steady stream of income when you decide to retire. An annuity is an agreement between you and an insurance company, where you accumulate your funds in a tax advantaged manner and can later receive a series of payments provided by the insurance company for a determined period of time, either a number of years or for life, beginning right away, or in the future, whatever your needs are.
If you are in a saving-money stage of life, annuities can help you:
- Meet your retirement income goals.
- Manage and diversify your investment portfolio.
- Have different options.
- Benefit your heirs.
- Plan your estate.
If you are in a need-income stage of life, annuities can help you:
- Have a lifetime income.
- Protect against outliving your assets.
- Protect your assets from creditors.
- Diversify investment risk.
- Tax deferral on investment earnings.