Annuities can be used for a variety of purposes and they can fit well into almost any retirement plan. No matter what’s currently in your plan or portfolio, chances are that an annuity can help you achieve your financial goals.
What Is An Annuity?
Annuities: You’ve heard of them, but what exactly are they? An annuity is an investment tool that could provide you with secure retirement savings. You can start receiving money from your annuity immediately or you can sock it away on a tax-deferred basis for decades before you start getting the benefits.
There are several different types of annuities. Immediate annuities are a popular choice for soon-to-be retirees, while deferred annuities are more popular with those who want to let their investment grow over time. A fixed-rate annuity offers guaranteed interest rates, tax deferrals and the option to have a guaranteed stream of income for life.*
Here are some more basics about annuities:
An annuity can be used to fund retirement plans like Traditional, Roth, SEP and SIMPLE IRAs.
An IRA annuity can be used for rolling over funds from an employer’s retirement plan, such as a 401(k), when changing jobs.
*Coverages may not be applicable to all carriers