Women looking for annuities online

Annuities are often misunderstood – which is a shame, because they can offer many benefits including tax deferred accumulation and guaranteed income.

An annuity is a financial product from an insurance company.  There are annuities that have a fixed rate of return on the investment as well as those that have a variable rate.  In addition, annuities can be deferred, where you begin distributions from the annuity at a later date, or immediate, where you begin distributions immediately.

Annuities Explained

  1. Immediate- An immediate annuity provides payments immediately after you make your payment into it. For people in retirement who are looking for regular income payments this may be a very good option.  You invest our money, and the insurance company provides guarantees, for example regular payments for your lifetime or for a specific period of years.  Immediate annuities can have either a fixed or variable interest rate.  There are many different types of immediate annuities and we would be happy to explain the options.
  2. Deferred - A deferred annuity allows you to put money into the annuity in a lump sum, or contribute to it regularly or sporadically.  The money accumulates tax deferred, similar to a 401K plan.  When you need the money, you can choose how you would like to structure the payout, as a lump sum or a continuing stream of income.  The interest on a deferred annuity can be either fixed or variable.

There are many variables with annuities.  Therefore, we recommend speaking with one of our specialists so you can ensure you have the right information to make an informed decision about your financial future.