Immediate Annuities

Retirement by Design

For those in need of steady income payments within a short amount of time, immediate annuities can be a great choice.

Retirement by Design

THE BASICS ON IMMEDIATE ANNUITIES

No matter what we prefer, planning for retirement is changing and will continue to do so. Because of this, it’s important that people prepare now for their future. For many people who are retired, immediate annuities are a product that can assist with accomplishing this goal.

  • Retirement by Design

    WHAT IS AN IMMEDIATE ANNUITY?

    First, let’s discuss a general definition of annuities. Annuities are insurance products that function as an agreement between an individual and a financial institution. The person agrees to make a lump sum payment to an insurance company, who makes regular payments back to the person throughout the life of the annuity. Annuities are long term products designed to supplement retirement income and product guarantees are backed by the financial strength and claims-paying ability of the issuing insurer.

    There are two basic kinds of annuities, deferred and immediate, that determine how these payouts occur. Deferred annuity payments start at later date and time while immediate annuities can start payouts almost immediately.

    For those in need of steady income payments within a short amount of time, immediate annuities can be a suitable choice. Another attractive feature of these annuities is they feature tax-deferred growth, which means you aren’t required to pay taxes on any potential increase until the money is withdrawn. Although these payments will be tax deferred, any distributions may be subject to ordinary income tax and, if taken prior to age 59 1/2, an additional 10% federal tax.

    There are many companies out there that sell immediate annuities, providing you with a lot of options. By working with Retirement by Design, you’ll gain access to many of these companies and have options available to you for immediate annuities.

  • Retirement by Design

    ADVANTAGES OF IMMEDIATE ANNUITIES

     

    • Low risk: Immediate annuities provide a low risk investment option to people averse to taking financial risk.
    • Flexible payout schedule: You can choose to receive income from an immediate annuity on a monthly, quarterly, semi-annually or annually basis.
    • Regular income stream: An immediate annuity allows you to plan for expenses by providing a check for a fixed amount on a set date.
    • Better returns: Immediate annuities offer attractive rates and income compared to other fixed deposit products such as CDs.

     

     

Retirement by Design

Want to learn more?

Talk to one of our knowledgeable financial professionals. We will be happy to discuss your financial situation and retirement goals to determine if one of these products would be a suitable choice for you.

Call us today at 239-249-8888 to set up your appointment.