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Annuities
An annuity
is a valuable retirement tool, it is a long term financial contract
where an insurance company promises to make a series of payments in
exchange for a premium. An
Annuity is unique in that it provides tax deferral of
interest and capital gains and the option of a guaranteed monthly
income which you can not outlive. Tax-deferred annuities may be a conservative addition to your
retirement portfolio and can help you achieve your goal of financial
security. Annuities can offer competitive interest rates and
potentially lower risk.
The majority of people who purchase annuities currently have a
traditional retirement plan. Annuities purchased with funds outside of
these "tax-qualified" retirement plans (IRAs, 401(k)s, Keoghs, etc.)
provide the following benefits:
Unlimited Contributions
Qualified plans have annual contribution limits. Annuities purchased
outside of these plans allow you to contribute virtually unlimited
amounts.
Flexible Distributions
While the IRS requires that you begin taking payments from a qualified
retirement plan by age 70½ (or face federal and/or state income tax
penalties), a non-qualified, tax-deferred annuity allows you to decide
when to start taking income -- and when to pay the taxes.
A Lifetime Income
When you're
ready to receive income from your plan, you can choose a single
payment or payments over a fixed number of years. You can also choose
to receive systematic income payments guaranteed to last for the rest
of your life, or even for you and your spouse's lives! |
