There are many annuity options available, so you can choose the one that best suits your needs. To further customize your annuity, you can purchase various contract provisions (known as riders).
A variable annuity may be a good option for those who are more advanced in their investment journey. If you have already paid off your home and exhausted all other tax-favored retirement plans, you shouldn’t even consider adding a variable annuity into your investment strategy. This means that you are contributing to your 401(k), Roth IRA, and all other tax-favored retirement plans.
There are many types of annuity products that you can choose from. Your financial professional will tailor a plan for you, whether you are looking for income options, legacy planning tools, or spousal security.
Annuities are not for everyone. They can be complicated, have limited upside potential, higher taxes in the future, higher fees on certain products and penalties during the cash surrender period.
An annuity can be described as a long-term contract that is issued by an insurance company. Annuities can be a great option if you’re nearing retirement and want to ensure that your income doesn’t go unclaimed. Annuities are like any investment. However, they can have their pros and disadvantages, but overall, they are safe.
An annuitant refers to a person who has an annuity account. An annuitant will receive the monthly payment.
You must wait a certain amount of time before you can withdraw money from your annuity. You will be charged a substantial surrender fee if you withdraw funds prior to the end of the surrender period. The surrender period can be extended for years.
Annuities are a great way to save money on your retirement, as well as grow your wealth.
You should assess your investment goals, risk tolerance, and income requirements before you decide on an annuity. An investment professional can help determine if annuities make a good investment.
The most secure type of annuity is fixed and fixed indexed. Fixed annuities provide guaranteed income. Fixed annuities grow at a fixed rate to protect the owner from market volatility. They will receive a minimum payment regardless of what happens in the stock markets or interest rates. Fixed-indexed annuities offer the security of an annuity but also the possibility for upside growth. These annuities offer market protection and allow the owner to take part in gains up to a certain limit. If the stock market falls, annuity owners are protected. The annuity owner may still take part in gains if the stock market rises, but only up to a point.
RetireSharp Wealth Management, LLC is a registered investment adviser in the state of Florida. The adviser may transact business in states where it is appropriately registered, or where it is excluded or exempted from registration. Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any securities or investment advisory services. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser or a tax professional before implementing any strategy discussed herein.
This information is designed to provide general information on the subjects covered, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Ifasi Financial and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.
Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by RetireSharp Wealth Management, LLC.